Australian LNG player Woodside has signed a long-term LNG supply deal with South Korean importer Kogas.
The sales and purchase deal provides for the supply of about 0.5 million tonnes per annum of LNG for a period of 10.5 years on a delivered basis, starting in 2026 subject to customary conditions precedent, according to Woodside.
LNG delivered to Kogas under the SPA will come from uncommitted volumes across Woodside’s global portfolio, including the Scarborough energy project which is targeting first LNG cargo in 2026.
In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments worth about $12 billion.
Also, Pluto Train 2 will get gas from the Scarborough gas field, located about 375 km off the coast of Western Australia, through a new trunkline long about 430 km.
Woodside CEO Meg O’Neill said the SPA was “significant” as Woodside’s first long-term supply agreement into Korea, the world’s third largest LNG market.
“Woodside is pleased to be a long-term supplier of LNG to Kogas, a leading global energy company and one of the world’s largest LNG importers,” she said.
O’Neill said this agreement “is further demonstration of ongoing robust demand for Woodside’s products from major energy customers in our region.”
Kogas president and CEO Choi Yeon-hye welcmoed the signing of the SPA with Woodside.
“This SPA has enabled Kogas to enlarge the customer base in the domestic power market, reinforcing our role as a leading natural gas supplier in Korea,” she said.
Kogas 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 has a small-scale regasification terminal at the Aewol port on Jeju island as well.
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