Trafigura inks decade-long LNG deal with KOGAS, securing stable South Korean energy supply and strengthening its global LNG market role.
Trafigura, one of the world’s foremost commodity trading and logistics companies, has entered into a long-term agreement with Korea Gas Corporation (KOGAS) to supply liquefied natural gas (LNG). KOGAS, South Korea’s state-owned gas utility and among the largest LNG importers globally, will receive substantial volumes of LNG from Trafigura under this newly signed deal, with deliveries expected to span the next decade.
The contract is structured around Henry Hub, the benchmark index for natural gas pricing in the United States. Trafigura plans to fulfill its obligations through its existing LNG offtake agreements with major producers, including Cheniere Energy—the leading exporter of LNG from North America—along with supplies drawn from the company’s diverse global LNG portfolio.
This agreement significantly reinforces Trafigura’s influence in the international LNG market. It further underlines the company’s expanding footprint in the United States, where it already records an annual turnover exceeding USD 40 billion across its energy and commodities businesses, including natural gas, crude oil, refined petroleum products, and metals.
Richard Holtum, Chief Executive Officer of Trafigura, emphasized the strategic importance of the partnership, stating:
“We are delighted to finalize this long-term LNG supply agreement with KOGAS. South Korea is a key partner across all our major trading activities, and this deal demonstrates our capability to connect world-class producers with leading consumers in today’s increasingly complex energy landscape. With our US offtake agreements and a strong global LNG network, we are well-positioned to ensure KOGAS receives the secure and dependable energy supplies necessary to support Korea’s economic growth.”
On behalf of KOGAS, Chief Executive Officer Yeonhye Choi highlighted the importance of this collaboration in the current volatile energy environment:
“This agreement represents a pivotal step in creating a stable and trustworthy long-term partnership. With global energy markets facing increasing uncertainty, diversifying import channels has become essential. Through this arrangement with Trafigura, KOGAS aims to enhance the security of Korea’s energy supply while maintaining economic efficiency. Both organizations are committed to building a relationship based on collaboration and mutual confidence. KOGAS will continue to ensure reliable, affordable, and sustainable energy delivery to Korea, supported by this vital cooperation with Trafigura.”
The long-term agreement comes at a time when global LNG markets are witnessing heightened demand and structural shifts, driven by the energy transition, supply chain disruptions, and geopolitical dynamics. For South Korea, the world’s third-largest LNG importer, securing dependable supplies is crucial to meeting industrial needs, household consumption, and national energy security objectives. For Trafigura, this deal not only strengthens its LNG trade flows into Asia but also consolidates its role as a key link between American LNG producers and Asian consumers.
