Under the HoA, TotalEnergies will deliver 1 million tons of LNG per year over a 10-year period starting from the end of 2027, according to TotalEnergies.
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, currently the world’s largest LNG importer, the firm said.
These additional LNG volumes will then be delivered to Korean industries, businesses, and households.
TotalEnergies said the LNG supplies will come from its global supply portfolio, and particularly from its US LNG production and offtake.
LNG trader Trafigura recently signed a long-term deal to supply US LNG to Kogas.
Kogas said that South Korea will buy 3.3 million tons of LNG from the US per year for a decade, starting in 2028, as the two countries look to expand cooperation across key sectors.
The volume secured under this long-term contract will be supplied from LNG projects operated by Cheniere, including the Corpus Christi facility in Texas, it said.
The contract is expected to help Kogas diversify its LNG import sources, which had been concentrated in the Middle East, including in Qatar.
Kogas said the US will become its primary LNG supplier.
Kogas currently operates 77 LNG storage tanks at five LNG import terminals in South Korea.
The large terminals include Incheon, Pyeongtaek, Tongyeong, and Samcheok, while the firm also has a small-scale regasification terminal at the Aewol port on Jeju Island.
Kogas is also building the Dangjin LNG terminal and has just awarded a contract for the second phase of the project.