France’s energy giant TotalEnergies has secured a multi-year liquefied natural gas (LNG) supply agreement with Korea Gas Corporation (KOGAS), South Korea’s national gas company, which is perceived to be one of the world’s largest importers of LNG.
Following its LNG supply deal with Trafigura, KOGAS has signed a heads of agreement (HoA) with TotalEnergies for the annual delivery of 1 million tons of LNG per year to South Korea over ten years, starting from the end of 2027.
Yeonhye Choi , President and CEO of KOGAS, stated: “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.
“This engagement reinforces our commitment to securing a stable LNG supply amid a rapidly changing global energy landscape. We look forward to further strengthening our relationship with TotalEnergies to support a sustainable LNG value chain.”
According to the French energy heavyweight, the contract increases the volume of LNG supplied to the Asian firm to 3 million tons per year from 2028, with the additional LNG volumes set to be delivered to Korean industries, businesses, and households.
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Patrick Pouyanné , Chairman and CEO of TotalEnergies, highlighted: “We thank KOGAS for its trust in TotalEnergies’ ability to supply its Asian customers with reliable and competitive LNG through its global portfolio.
“ This agreement enables TotalEnergies to secure long-term outlets in Asia, consistently with the growth of its LNG supply, particularly from the United States.”
The LNG will come from TotalEnergies’ global supply portfolio, and particularly from its U.S. LNG production and offtake. The company, which describes itself as the world’s third-largest LNG player, has a global LNG portfolio of 40 million tons per year in 2024.
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The French firm is keen on expanding the share of natural gas in its sales mix to around 50% by 2030, curbing carbon emissions, eliminating methane emissions associated with the gas value chain, and working with local partners to promote the transition from coal to natural gas.