A Contract for up to 18 Years
Korea Gas Corp. (KOGAS) has signed a long-term U.S. LNG sale and purchase agreement (LNG SPA) with BP p.l.c, a comprehensive energy company.
KOGAS will import 1.58 million tons of Henry Hub-linked LNG per year for up to 18 years from 2025.
A signing ceremony was held at BP headquarters in London on April 21 (local time), with the attendance of representatives of the two companies including Chae Hee-bong, president of KOGAS and Ms. Carol Howle, executive vice president of trading & shipping at BP.
KOGAS sealed the deal with BP Singapore Pte., a BP subsidiary in Singapore. BP was selected through an international tender organized by KOGAS in 2018 to secure a stable LNG supply. The two sides signed a head of agreement (HoA) in Sept. 2019.
Experts call this contract very advantageous for KOGAS in light of the recent rise in oil and international LNG market prices. They predicted that the contract will make a significant contribution to stabilizing natural gas prices in Korea in the future.