KOGAS, EDF Trading Ink LNG Capacity and Supply Agreement

Korea Gas Corporation (KOGAS) has signed a ‘Capacity and Optimisation Agreement’ with EDF Trading, a wholly-owned subsidiary of EDF S.A.

The agreement is for the supply and optimisation of up to 4 MT of LNG over eight years from 2017, EDF Trading said Wednesday.  The deal enables KOGAS’ participation in the European LNG market through European market access provided by EDF Trading.  In addition, KOGAS employees will be seconded to EDF Trading’s offices in London.

“This agreement is an extension of our long term relationship with KOGAS where we have previously supplied gas into Korea,” said John Rittenhouse, Chief Executive of EDF Trading.  “We also hope to be able to provide KOGAS with hedging and risk management services which will help reduce the cost of supplies to the South Korean market”, he continued.

“With the increasing uncertainties in the domestic and global market, it is of vital importance that KOGAS should effectively cope with the forthcoming challenges, as a single aggregator in Korea and one of the key suppliers, to handle equity volume from its own LNG projects.  In that sense, this optimisation agreement would enable us to reduce the LNG procurement cost as well as manage the imbalanced market situation on a flexible basis”, said Seung-Hoon Lee, President of KOGAS.