TotalEnergies & KOGAS Sign 10-Year LNG Supply Deal
- Long-Term Commitment: TotalEnergies and South Korea’s KOGAS have signed a Heads of Agreement (HoA) under which TotalEnergies will supply **1 million tons per year (Mt/yr)** of liquefied natural gas (LNG) to KOGAS for **10 years**, starting at the end of 2027.
Updated Analysis
This deal strengthens both supply stability for South Korea and market reach for TotalEnergies. From 2028 onwards, the supply volume under this agreement increases to **3 Mt/yr**. Analysts interpret this as part of TotalEnergies’ strategy to expand its presence in Asia and secure predictable demand amid global shifts in energy policy.
Deal Details
- Start date: End of 2027 for 1 Mt/yr.
- Volume increase: From 2028 onward, supply will rise to 3 Mt/yr.
- Source: LNG will come from TotalEnergies’ global portfolio, including its U.S. LNG production and offtake.
- Use in South Korea: Delivered LNG will serve Korean industries, businesses, and households.
Read full coverage:
Reuters |
TotalEnergies Press Release |
LNG Industry
Market & Strategic Snapshot
While 1 Mt/yr is a modest increment compared to global LNG flows, the up-ramp to 3 Mt/yr from 2028 represents meaningful growth. For South Korea, which is already one of the world’s largest LNG importers, this helps diversify supply sources and strengthen energy security. For TotalEnergies, this solidifies its footprint in Asia and aligns with its aim to increase natural gas’ share in its energy mix and leverage its U.S. LNG assets. Watch: pricing trends, spot vs contracted premiums, and how this influences Korea’s broader energy transition strategy.
Latest related insight:
Reuters — TotalEnergies & KOGAS Sign 10-Year LNG Deal
