Korea Gas Corp. (Kogas) has announced that it has signed a Capacity and Optimisation Agreement with EDF Trading, a wholly-owned subsidiary of EDF S.A.
The agreement covers the supply and optimisation of up to 4 million t of LNG over eight years from 2017.
Under the deal, EDF Trading will provide Kogas with access to the European LNG market. Kogas employees will also be seconded to EDF Trading’s offices in London.
John Rittenhouse, Chief Executive of EDF Trading, said: “This agreement is an extension of our long-term relationship with Kogas where we have previously supplied gas into Korea […] We also hope to be able to provide Kogas with hedging and risk management services which will help reduce the cost of supplies to the South Korean market.”Seung-Hoon Lee, President of Kogas, added: “With the increasing uncertainties in the domestic and global market, it is of vital importance that Kogas should effectively cope with the forthcoming challenges, as a single aggregator in Korea and one of the key suppliers, to handle equity volume from its own LNG projects. In that sense, this optimisation agreement would enable us to reduce the LNG procurement cost as well as manage the imbalanced market situation on a flexible basis.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10112015/kogas-signs-agreement-with-edf-trading-1606/