South Korea’s energy ministry said on Monday it had signed a 20-year liquefied natural gas (LNG) supply agreement with Qatar for the next 20 years starting in 2025, APA-Economics reports citing Reuters.
South Korea’s state-run Korea Gas Corp will buy 2 million tonnes of LNG annually from Qatar Petroleum (QATPE.UL).
“This long-term contract is considered to have favorable contract conditions, which would help stabilize LNG supply as well as to significantly drop fees,” the ministry said in a statement.
It did not provide financial details of the agreement.
The energy ministry added that KOGAS buys 9 million tonnes of LNG annually from Qatar through long-term contracts and a contract worth 4.9 million tonnes of LNG is expected to end in 2024.