Energy giant TotalEnergies has signed a new Heads of Agreement (HoA) with KOGAS, the national company for natural gas in South Korea.
Under the new deal, from 2028, TotalEnergies will supply an extra million tons (Mt) of liquified natural gas (LNG) each year for 10 years. KOGAS is currently the biggest importer of natural gas in the world, and the new contract will take TotalEnergies contribution to 3 Mt per year. In addition to being a producer of crude oil and derived products like the Castrol metalworking range, the firm is one of the world’s biggest players in the LNG market. Like many Asian countries, South Korea is transitioning from coal to natural gas to reduce its greenhouse gas emissions.
TotalEnergies’ CEO and Chairman, Patrick Pouyanné, said about the new deal:
“We thank KOGAS for its trust in TotalEnergies’ ability to supply its Asian customers with reliable and competitive LNG through its global portfolio. This agreement enables TotalEnergies to secure long-term outlets in Asia, consistently with the growth of its LNG supply, particularly from the United States.”
The extra LNG volumes will ultimately be used to power South Korean businesses, industries and homes. They will be sourced from TotalEnergies global portfolio of LNG assets, which totalled 40 Mt last year. The company is working on maximising the environmental benefits of transitioning to natural gas by enhancing the gas value chain to eliminate methane emissions and reduce carbon emissions. It sees natural gas as accounting for half its sales by the end of the decade.
