South Korea Diversifies LNG Import Channels Via Trafigura Deal

Trafigura has signed a long-term LNG supply agreement with South Korea’s KOGAS, securing Henry Hub-indexed deliveries over the next decade from its U.S. offtake deals and global LNG portfolio.

(P&GJ) — Trafigura has signed a long-term agreement to supply liquefied natural gas (LNG) to Korea Gas Corporation (KOGAS), one of the world’s largest LNG importers.

The deal, announced Tuesday, calls for substantial LNG deliveries to KOGAS over the next decade, priced against the U.S. Henry Hub benchmark. Trafigura said it will meet supply commitments through its global LNG portfolio and offtake agreements with producers, including Cheniere Energy.

"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," said Richard Holtum, Trafigura CEO. "This deal demonstrates our ability to connect major producers with key consumers in an increasingly complex energy landscape."

KOGAS CEO Yeonhye Choi said the agreement strengthens energy security. “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,” Choi said.

Trafigura said the agreement reinforces its position in the global LNG market and builds on its U.S. operations, which generate more than $40 billion in annual turnover across natural gas, crude oil, refined products and metals.