BP signs long-term LNG agreement with Korea Gas Corp
April 29 (Reuters) - BP has entered into a long term liquefied natural gas (LNG) sale and purchase agreement with South Korea’s state run Korea Gas Corp (KOGAS), the global oil major said on Monday.
“Under the agreement, BP will provide KOGAS with up to 9.8 million tonnes of LNG over 11 years on a delivered ex-ship (DES) basis,” the company added. The deliveries will commence in mid-2026.
This deal is in addition to the existing long-term sale and purchase agreement between the two companies signed in 2022.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Christian Schmollinger)
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.