South Korea’s national natural gas company, KOGAS, has partnered with TotalEnergies to seal a Heads of Agreement (HoA) for the annual delivery in South Korea of 1 million tons (Mt) per year of LNG over a 10-year period, starting from the end of 2027. The Korean company awarded the deal to TotalEnergies after an international tender, and the contract will increase to 3 Mt per year from 2028.
The additional LNG volumes will then be delivered to Korean industries and homes, and will be sourced from TotalEnergies’ global supply portfolio, especially from its U.S. LNG production and offtake.
Reacting, Patrick Pouyanné, Chairman and CEO of TotalEnergies, appreciated KOGAS for trusting in his company, stressing that the agreement will go a long way towards strengthening TotalEnergies’ relationship with the Asian market.
He stated that South Korean citizens should expect reliable and quality products throughout the duration of the contract.
“We thank KOGAS for its trust in TotalEnergies’ ability to supply its Asian customers with reliable and competitive LNG through its global portfolio. This agreement enables TotalEnergies to secure long-term outlets in Asia, consistently with the growth of its LNG supply, particularly from the United States”, he said.
Also speaking, Yeonhye Choi, President and CEO of KOGAS, maintained that the deal doesn’t just boost the economic value of its LNG portfolio, but also contributes to diversifying its sources of LNG supply.
Choi concluded by saying that the crucial agreement reiterates KOGAS’ commitment to guaranteeing a stable LNG supply amid the uncertain global energy landscape.
“We are pleased to finalize this agreement with TotalEnergies, which not only enhances the economic value of our LNG portfolio but also contributes to diversifying our sources of LNG supply.
This engagement reinforces our commitment to securing a stable LNG supply amid a rapidly changing global energy landscape. We look forward to further strengthening our relationship with TotalEnergies to support a sustainable LNG value chain,” he added.
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