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South Korean firms line up

LNG supply deals

KOREA TWO South Korean companies signed sale and wind project,” stated TotalEnergies’ president
purchase agreements (SPAs) this week to buy of gas, renewables and power, Stéphane Michel.
LNG from international sellers. Hanwha’s CEO, Jung In Sub, said it was “sig-
On May 24, France’s TotalEnergies nificant” that his company had secured business
announced that it had agreed to sell 600,000 stability through the long-term supply deal amid
tonnes per year (tpy) to South Korea’s Hanwha a volatile LNG market.
Energy over a 15-year period starting in 2024. A Under the other deal, Cheniere will supply
day later, Cheniere Energy signed an SPA with a LNG to Posco, which is South Korea’s largest
subsidiary of Posco Holdings covering the sup- steelmaker and also owns the country’s first pri-
ply of 400,000 tpy of LNG over a 20-year period vate LNG terminal. This deal supports Cheniere’s
from 2026. planned expansion of its Corpus Christi LNG
The deals were announced as the World Gas terminal in Texas, and is conditional on a final
Conference 2022 took place in Daegu this week. investment decision (FID) being made on that
Under the first of the two deals, LNG will be project. In the announcement, Cheniere’s pres-
sourced from TotalEnergies’ global portfolio and ident and CEO, Jack Fusco, said the FID was
delivered to the Tongyeong regasification termi- anticipated this summer.
nal. This gas will be used to supply Hanwha & The deals follow a number of other SPAs
HDC’s greenfield 1-GW power plant, which is struck between international sellers – often in
currently under construction next to the LNG the US – and Asian buyers in recent months.
terminal. Asian LNG importers will be particularly keen to
“Our company is keen to support the coun- secure long-term supplies given that European
try’s switch away from coal for power generation, companies will also be eyeing new LNG volumes
with both LNG supplies and renewables projects, as they seek to cut their dependence on Russian
such as our significant ‘Bada’ 2-GW offshore gas. ™

Grain LNG sees record usage

UK THE Grain LNG terminal in the UK posted LNG signed a contract with Qatar Terminal
record gas send-out levels in April, as high Limited in 2020 to increase storage to 1.2mn
demand for gas from Europe pushed utilisation cubic metres by mid-July 2025, while regasifica-
rates up, with LNG tankers arriving from eight tion send-out will rise to 800 GWh per day.
new countries since January. As part of the expansion project, Grain will
The terminal saw its highest ever utilisation be commissioning a second cryogenic unload-
rate in April, sending out an average of 431 GWh ing line – and will be the only terminal in Europe
per day, more than the previous high of 412.2 able to perform simultaneous unloads.
GWh in April 2021. All the capacity at the terminal is currently
The figure represents 67% of the plant’s total fully contracted, with capacity becoming availa-
utilisation and equates to approximately 13% of ble from the end of 2028. Grain LNG intends to
the UK’s total gas demand. launch an Open Season to market this capacity
However, most of this gas is then re-exported in the near future.
via pipeline to the European gas network, as coun- Expansion at Grain LNG is just one of a num-
tries such as the Netherlands, Belgium, France and ber announced across Europe in recent months
Germany seek new sources of gas as imports from in the wake of the war in Ukraine and Europe’s
Russia fall because of the war in Ukraine. subsequent scramble for new sources of gas.
“Current UK gas demand is about average for A number of pre-invasion projects that once
this time of year. However, the impact of a freeze were considered to have a questionable eco-
on Russian gas is being felt across Europe, and as a nomic case are now moving forward swiftly.
result we are seeing increased LNG deliveries,” said Once considered a backwater in terms of
Importation Terminal manager Simon Culkin. LNG market growth prospects, Europe is now
Grain LNG is of strategic national impor- embracing the supercooled gas like never before
tance to UK, and also offers direct access to the in its push to end all use of Russian gas. Indeed,
UK’s NBP gas trading hubs. data published by Gas Infrastructure Europe
The site has the largest terminal in Europe (GIE) in late April indicates that Europe’s regas-
and eighth-largest in the world by tank capacity. ification capacity will rise by 102.5bn cubic
Storage capacity is set to expand after Grain metres per year to 361.8 bcm per year by 2026. ™

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