Gas Gong, Annual Import of 1.58 Million Tons of LNG from UK BP... Corresponds to 3% of Domestic Consumption

Exterior view of the Korea Gas Corporation headquarters located in Daegu.
Photo by Asia Economy DB

[Asia Economy Sejong=Reporter Lee Junhyung] Korea Gas Corporation receives an annual supply of 1.58 million tons of liquefied natural gas (LNG) from British energy company British Petroleum (BP).

On the 21st (local time), Gas Corporation announced that it signed a contract to import 1.58 million tons of LNG annually with BP in London, UK. This was the result of Gas Corporation participating in an international competitive bidding in 2018 to secure LNG volumes stably. The contract signing ceremony held at BP headquarters was attended by Cha Heebong, president of Gas Corporation, and Carol Howl, head of BP's Trading and Shipping division.

Chae Hee-bong, President of Korea Gas Corporation (left), and Carol Howle, President of BP Trading and Shipping, attending the liquefied natural gas (LNG) import contract signing ceremony held at BP headquarters in London, UK. [Photo by Korea Gas Corporation]

The 1.58 million tons of LNG that Gas Corporation will receive annually from BP accounts for about 3% of the country's annual consumption. Under this contract, Gas Corporation will receive LNG from BP for up to 18 years starting in 2025. Gas Corporation expects that the LNG volumes supplied by BP will contribute to stabilizing domestic natural gas prices. Diversifying gas import sources is also expected to reduce Gas Corporation's dependence on the Middle East.

This contract is the first long-term agreement between Gas Corporation and BP. Accordingly, Gas Corporation also anticipates strengthening cooperation with BP.

Cha Heebong, president of Gas Corporation, said, "This contract is expected to ensure the safety of domestic natural gas supply, reduce prices, and strengthen supply response capabilities," adding, "We will do our best to improve the energy welfare of the people."

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