April 29

BP, Kogas ink new long-term LNG supply deal

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UK-based energy giant BP has signed a new long-term liquefied natural gas (LNG) sale and purchase deal with South Korea’s Kogas.

Under the agreement, BP Singapore, a unit of BP, will provide Kogas with up to 9.8 million tonnes of LNG over 11 years on a delivered ex-ship (DES) basis from BP’s portfolio of LNG sources.

BP said in an emailed statement that deliveries will start in mid-2026.

This deal is in addition to the existing long-term sale and purchase agreement between BP and Kogas for DES supply of LNG that was signed in 2022, it said.

BP did not provide additional details regarding the new deal.

Under the Henry Hub-linked SPA signed in 2022, BP Singapore, a unit of BP, will deliver 1.58 million tonnes of LNG per year to Kogas starting in 2025.

Kogas said that these supplies will come from the US, including the Freeport LNG terminal in Texas, and this is the first long-term supply contract between the two firms.

Prior to this new deal with BP, Kogas agreed to buy about 0.5 million tonnes per year of LNG for a period of 10.5 years on a delivered basis from Australia’s Woodside.

LNG delivered to Kogas under the SPA will come from uncommitted volumes across Woodside’s global portfolio, including the Scarborough energy project which is targeting first LNG cargo in 2026.

Kogas operates 77 LNG storage tanks at five LNG import terminals in South Korea.

The large terminals include Incheon, Pyeongtaek, Tongyeong, and Samcheok, while the firm has a small-scale regasification terminal at the Aewol port on Jeju island as well.

Also, the firm is building a large terminal in Dangjin and expects to launch the first phase in December 2025.

Source: Lngprime.com

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The post BP, Kogas ink new long-term LNG supply deal appeared first on Energy News Beat.

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