CEO Chae Hee-bong says, “This contract will help stabilize the supply and demand of natural gas in Korea”
Korea Gas Corp. (KOGAS) will introduce 2 million tons of liquefied natural gas (LNG) annually from Qatar for 20 years (2025-2044). This time, the price conditions are expected to improve due to changes in the international natural gas market, saving about $1 billion over the past 20 years.
This is due to securing favorable contract conditions such as competitiveness in LNG introduction price and flexibility in introduction volume, and it is predicted that it will also contribute to reduction of natural gas charges in South Korea.
KOGAS said on July 12 that it will introduce 2 million tons of LNG annually produced in Qatar from 2025 to ensure stable supply and demand of natural gas.
The gas corporation is introducing about 9 million tons of liquefied natural gas annually under a long-term contract with Qatar. Among them, a long-term contract worth about 4.9 million tons will be terminated in 2024.
The contract price is considered as the cheapest among long-term contracts signed by KOGAS.
"This contract will help stabilize the supply and demand of natural gas in Korea and reduce fares," said Chae Hee-bong, president of Korea Gas Corp. "We expect the cooperative relationship between the two countries, including shipbuilding and plants, to be further strengthened."