Page 15 - AsianOil Week 17 2022
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KOGAS strikes deal for
US LNG supply with BP
PROJECTS & STATE-OWNED Korea Gas (KOGAS) has
COMPANIES struck a deal to buy US-produced LNG from BP.
The sale and purchase agreement (SPA) follows a
heads of agreement (HoA) between the two sides
that was reached in 2019.
Under the finalised deal, KOGAS will import
1.58mn tonnes per year (tpy) from BP’s Singapo-
rean subsidiary starting in 2025 for a period of 18
years. The price of LNG sold under the deal will
be indexed to the US’ Henry Hub benchmark,
which KOGAS said is considered “very compet-
itive” given current oil and LNG prices. Further
financial details were not disclosed. for new ones. In mid-2021, the company said it
The deal is the first LNG supply agreement had struck a new 20-year deal with state-owned
between KOGAS and BP. It comes as the South Qatar Petroleum – since renamed to QatarEn-
Korean company works to replace long-term ergy – for the supply of 2mn tpy of LNG starting
supply agreements that are either expiring or in 2025. KOGAS also imports some US LNG
have already done so in the last three years. For already as a result of a 20-year SPA with Cheniere
example, 5.78mn tpy worth of contracts with Energy covering 3.5mn tpy that began in 2017.
LNG suppliers in Asia and the Middle East The South Korean company noted that some
ended in 2019 alone and a further 7.02mn tpy of of the LNG under its new SPA would come from
contracts for LNG from Qatar are due to expire the Freeport LNG terminal in Texas, with which
by 2026. BP has an offtake deal. BP is also an offtaker from
KOGAS has been seeking to extend or renew Venture Global LNG’s Calcasieu Pass facility in
some of its existing contracts while also looking Louisiana, which entered service this year.
France’s GTT wins LNG tank
design contract from SMI
PROJECTS & FRANCE’S GTT has won a contract from South
COMPANIES Korean shipbuilder Samsung Heavy Industries
(SMI) to design a tank for a new LNG carrier
(LNGC).
GTT said in a statement that the carrier
would have a total LNG tank capacity of 180,000
cubic metres and would be fitted with the Mark
III Flex membrane containment system, devel-
oped by GTT.
The announcement follows the award by Chi- At the start of April, GTT also won a Mark
nese shipyard Hudong-Zhonghua Shipbuilding III containment system contract from SMI to
(Group) Co. earlier in April of a tank design con- design the cryogenic fuel tanks for four LNG-
tract to GTT for four new LNGCs on behalf of fuelled container vessels.
two ship owners. This contract is not for the tanks that will
This order was for 174,000 cubic metre tanks carry LNG, in the LNGC, but for tanks that will
that will be fitted with the GTT NO96 L03+ contain LNG that will be burned as fuel by con-
membrane containment system, a technology tainer vessels.
developed by GTT. As well as LNG carriers, the use of the cooled
Deliveries of the vessels are scheduled for the gas as bunker fuel is a key developing market for
second and third quarters of 2024, and the first shipbuilders and developers of cryogenic tech-
quarter of 2025. nology such as GTT.
Week 17 29•April•2022 www. NEWSBASE .com P15
