Kogas Inks Long-Term Deal for U.S. LNG with BP

Korea Gas Corp., aka Kogas, said Friday that it has signed a long-term contract to buy U.S. liquefied natural gas (LNG) from an affiliate of BP plc. 

The company agreed to purchase 1.58 million tons (Mt) annually from BP Singapore Pte. Ltd. for an 18-year term at prices linked to Henry Hub. Kogas is one of the world’s largest LNG importers and South Korea’s sole provider of the super-chilled fuel.

[Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to NGI’s Daily Gas Price Index]

Kogas said it is the first LNG deal it has signed with BP. Volumes provided under the contract amount to about 3% of the country’s annual consumption. 

Kogas said the deal came as part of a competitive bidding process it launched in 2018 to secure...