Trafigura, a global leader in the commodities industry, has signed a long-term agreement to supply liquefied natural gas (LNG) to Korea Gas Corporation (KOGAS), the Republic of Korea’s national gas company and one of the world’s largest importers of LNG.

This agreement expects substantial volumes of LNG to be delivered to KOGAS over the next decade. The pricing index will be Henry Hub, the US natural gas benchmark.

Trafigura will meet this commitment through its offtake agreements with LNG producers, including Cheniere Energy, North America’s largest LNG exporter, and Trafigura’s global LNG portfolio.

The deal with KOGAS strengthens Trafigura’s position in the global LNG market. The Trafigura Group continues to build its significant US activity with current turnover totalling more than USD40 billion annually across natural gas, crude oil, petroleum products, and metals.

Richard Holtum, CEO, 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.”

Yeonhye Choi, CEO, KOGAS commented:
“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.”

Source: Trafigura