This deal significantly boosts TotalEnergies' existing supply to KOGAS, securing a stable and competitive energy source for the world's largest LNG importer.
In a move set to strengthen energy ties between Europe and Asia, energy giant TotalEnergies announced a significant new long-term agreement with Korea Gas Corporation (KOGAS), South Korea's national natural gas company. The new Heads of Agreement (HoA), signed on September 9, 2025, will see TotalEnergies supply one million tons of Liquefied Natural Gas (LNG) annually to KOGAS over a 10-year period, with deliveries scheduled to commence at the end of 2027.
This latest contract follows an international tender process and builds on an existing relationship, increasing the total annual volume of LNG supplied by TotalEnergies to KOGAS to three million tons starting from 2028. For South Korea, the world's largest LNG importer, this deal is a crucial step in diversifying its energy sources and securing a stable supply for its industries, businesses, and households. The LNG for this agreement will be sourced from TotalEnergies' extensive global portfolio, with a particular focus on its expanding production and offtake from the United States.
The agreement comes at a time when global energy markets are in a state of flux, with heightened geopolitical tensions and a renewed focus on energy security. KOGAS has been actively seeking new term contracts to stabilize prices and meet domestic demand. The company's President and CEO, Yeonhye Choi, highlighted this, stating the deal "enhances the economic value of our LNG portfolio but also contributes to diversifying our sources of LNG supply." This sentiment reflects a broader trend among major importers to lock in long-term contracts to hedge against volatile spot market prices.
For TotalEnergies, the deal solidifies its position as a key player in the global LNG market. As the world's third-largest LNG player, the company is strategically leveraging its global portfolio, which includes interests in liquefaction plants across all geographies. This agreement provides a secure, long-term outlet in a high-demand Asian market and aligns with the company's broader strategy to increase the share of natural gas in its energy mix. The company aims to have natural gas constitute close to 50% of its sales mix by 2030, a goal driven by its commitment to reduce carbon emissions by promoting a shift from coal to natural gas.
The contract is also a testament to the growing role of U.S. LNG exports in the global energy landscape. With North American projects accounting for a significant portion of new liquefaction capacity, companies like TotalEnergies are well-positioned to serve key Asian markets.
