TotalEnergies has signed a deal to supply KOGAS, South Korea's national natural gas company, with 1 million tons (Mt) of liquefied natural gas (LNG) annually for the next 10 years.
The French multinational integrated energy and petroleum company and South Korea's KOGAS announced the signing of a Heads of Agreement (HoA) on Tuesday.
The agreement includes the overall delivery of 10 Mt of LNG over a decade, starting from the end of 2027.
Awarded to TotalEnergies by KOGAS following an international tender, this contract increases to 3 Mt per year from 2028 onward the volume of LNG supplied by TotalEnergies to KOGAS.
These additional LNG volumes will then be delivered to Korean industries, businesses, and households, the company said.
These supplies will be met from TotalEnergies' global supply portfolio, and particularly from its US 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," said Patrick Pouyanné, chairman and CEO of TotalEnergies.
Yeonhye Choi, president and CEO of KOGAS said: "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."
By Cafer Baran Isik
Anadolu Agency
energy@aa.com.tr
