Korea Gas Corporation Signs Long-Term LNG Import Deal with BP

Jerome Milongo, BP's Global LNG Business Head, Choi Yeon-hye, President of Korea Gas Corporation, and Lee Moon-hee, Head of Marketing at Korea Gas Corporation, pose for a commemorative photo after signing a long-term LNG import contract on May 21. [Photo=Korea Gas Corporation]

Korea Gas Corporation (KOGAS) has signed a long-term agreement with global energy company BP to import an additional 700,000 tons of liquefied natural gas (LNG) annually for ten years starting in 2028.
KOGAS announced on May 22 that the contract was finalized on May 21. This follows a previous agreement made in August of last year to import 3.3 million tons of U.S. LNG annually. The new contract is expected to enhance the stability of South Korea's natural gas supply.
The agreement aims to diversify supply sources amid increasing instability in the energy market due to conflicts in the Middle East. It is anticipated to bolster supply chain resilience and energy import stability.
BP's ability to source LNG from various regions, including the U.S., Australia, Indonesia, Angola, and Oman, will further contribute to supply diversification. This flexibility is expected to be beneficial in maintaining a stable supply.
Additionally, as energy prices continue to rise, securing competitively priced LNG in advance may help stabilize domestic natural gas prices.
Choi Yeon-hye, President of KOGAS, stated, "In light of the growing importance of energy security, this achievement is the result of our ongoing efforts to enhance the stability of domestic natural gas supply and improve price competitiveness."

* This article has been translated by AI.

Kim SeongSeo biblekim@ajunews.com