Trafigura, a Singapore-headquartered commodities group, has secured a multi-year deal to supply liquefied natural gas (LNG) to Korea Gas Corporation (KOGAS), the Republic of Korea’s national gas company, said to be one of the world’s largest importers of LNG.
This long-term LNG supply agreement will see Trafigura deliver substantial volumes of LNG to KOGAS over the next decade under the Henry Hub pricing index, which is the U.S. natural gas benchmark.
The Singapore-based firm explains that it will meet this commitment through its offtake agreements with LNG producers, such as Cheniere Energy, North America’s largest LNG exporter, and its global LNG portfolio.
Richard Holtum , CEO of Trafigura, commented: “ We are delighted to sign this long-term LNG supply agreement with KOGAS. The Republic of Korea is a highly valued partner for Trafigura across all our core trading divisions.
“This deal demonstrates our ability to connect major producers with key consumers in an increasingly complex energy landscape. By leveraging our offtakes from US LNG companies and our global portfolio, we can provide KOGAS with the reliable energy supply that South Korea’s economy demands .”
The company sees the deal with KOGAS as a way to strengthen its position in the global LNG market, building on its U.S. operations, with current turnover of more than $40 billion annually across natural gas, crude oil, petroleum products, and metals. The latest LNG deal follows the one the firm signed with Indian Oil Corp (IOC).
Yeonhye Choi , CEO of KOGAS, remarked: “ The signing of this agreement marks a significant step toward establishing a reliable partnership amid rising uncertainty in the global market. This agreement is expected to diversify import channels while contributing to the stability of energy supply to Korea.
“Both parties are committed to building a long-term relationship founded on mutual trust and collaboration. KOGAS will continue its commitment to supply stable and economic energy to Korea with its important partner, Trafigura .”