Qatar Petroleum finalises 20-year LNG supply deal with South Korea
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Qatar Petroleum finalises 20-year LNG supply deal with South Korea

13 Jul 2021 (Last Updated July 13th, 2021 11:52)

Korea Gas Corp will buy two million tonnes of LNG annually starting from January 2025.

Qatar Petroleum finalises 20-year LNG supply deal with South Korea
Officials from Qatar Petroleum and KOGAS. Credit: Qatar Petroleum.

Qatar Petroleum has signed a 20-year agreement to supply LNG to state-run Korea Gas Corporation (KOGAS).

The sale and purchase agreement (SPA) will see the supply of two million tonnes per annum (MTPA) of LNG to KOGAS.

Effective from January 2025, Qatar Petroleum will supply LNG to KOGAS’ LNG receiving terminals located in the Republic of Korea.

Qatar Petroleum president and CEO, and Qatar Minister of State for Energy Affairs Saad Sherida Al-Kaabi said: “We are both proud and delighted to continue to serve as a major LNG supplier to KOGAS and the Republic of Korea.”

KOGAS currently receives more than nine MTPA of LNG from Qatar as part of long-term agreements. This makes Qatar the largest supplier of LNG to the Republic of Korea.

Since 1999, the Republic of Korea has received more than 2,500 LNG cargoes, totalling almost 185 million tonnes, from Qatar Petroleum’s LNG ventures.

South Korea’s energy ministry was quoted by Reuters as saying: “This long-term contract is considered to have favourable contract conditions, which would help stabilise LNG supply, as well as to significantly drop fees.”

Al-Kaabi said: “We are grateful to KOGAS for being such a great partner and customer, and we welcome this opportunity to further cement our partnership with KOGAS and to support the Republic of Korea’s national drive toward cleaner and more sustainable energy.”

The latest agreement follows the recent signing of LNG SPA by Qatar Petroleum with CPC Corporation, Taiwan (CPC).

The 15-year deal involves the supply of 1.25 MTPA of LNG to CPC’s receiving LNG terminals, starting from January 2022.

Since March 2006, Qatar has delivered more than 63 million tonnes of LNG to CPC.