Kogas inks long-term LNG supply deal with BP

South Korean state-owned Kogas signed a long-term liquefied natural gas supply deal with the UK-based energy giant and LNG player BP.

According to a statement by the South Korean Ministry of Trade, Industry and Energy, Kogas will be importing 1.58 million tons of LNG per year.

However, the deal includes a three-year extension option that, should it be enforced, could bring the total contract value up to $9.6 billion.

The volumes would be supplied from the Freeport LNG facility on Quintana Island in Freeport, Texas.

The ministry noted that the deal is expected to tighten the energy cooperation between South Korea and the United States as well as securing the diversification of the LNG supply sources.