By Ejekwu Chidiebere
TotalEnergies and KOGAS, South Korea’s national natural gas company have announced signing of a Heads of Agreement (HoA) for the annual delivery in South Korea of 1 million tons (Mt) of LNG per year over a 10-year period starting from the end of 2027.
Awarded to TotalEnergies by KOGAS following an international tender, this contract the French major said would increase to 3 Mt per year from 2028 onward the volume of LNG supplied by it to KOGAS which according to TotalEnergies’ statement is currently the world’s largest LNG importer. The additional LNG volumes Energy Window International (Media) has learnt will then be delivered to Korean industries, businesses, and households. They are expected to come from the Company’s global supply portfolio, and particularly from its U.S. LNG production and offtake.
“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”, says Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“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”, Yeonhye Choi, President and CEO of KOGAS said.