KOGAS and EDF Trading announce new LNG Capacity and Supply Agreement

KOGAS and EDF Trading announce new LNG Capacity and Supply Agreement

Korea Gas Corporation (“KOGAS”) has signed a Capacity and Optimisation Agreement with EDF Trading, a wholly-owned subsidiary of EDF S.A.

The agreement is for the supply and optimisation of up to 4 MT of LNG over eight years from 2017.  The deal enables KOGAS’ participation in the European LNG market through European market access provided by EDF Trading.  In addition, KOGAS employees will be seconded to EDF Trading’s offices in London.

“This agreement is an extension of our long term relationship with KOGAS where we have previously supplied gas into Korea,” said John Rittenhouse, Chief Executive of EDF Trading.  “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”, he continued.

“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”, said Seung-Hoon Lee, President of KOGAS.  In addition, this will be an opportunity to take our trading expertise to a higher level,” he added.

In the LNG market, EDF Trading is one of the world’s leading participants offering a complete range of services including purchase, supply and delivery, ocean-borne logistics, terminal capacity, regasification and nominations into pipeline networks.  It has LNG master agreements with all of the market’s key participants and has been particularly active in supporting the growing demand for LNG in Japan, Korea and countries throughout Asia. 

For further information, please contact:
EDF Trading
Michele Reid, Head of Communications
Tel: +44 (0) 20 7061 4232

Korea Gas Corporation (“KOGAS”) has established itself in August 1983 as Korea’s representative global energy company. KOGAS is a state entity with the public service mission with its overarching duty to satisfy the entirety of Korea’s natural Korea’s natural gas needs by securing stable gas supplies at a competitive price.

As a single enterprise, KOGAS is the largest importer of natural gas in the world and retains the world’s greatest storage capacity of 9.66 million kl with 64 storage tanks and the 4,250km-long pipeline national grid.

As a global gas provider based upon its 30 years of longevity and expertise, KOGAS is actively involved in various overseas projects of exploration, development and production, presently a total of 22 oil & gas fields in 12 different countries seeking to expand further out  on the road.

About EDF Trading
EDF Trading is a leader in the international wholesale energy markets. It manages a portfolio of assets which give it the ability to source, supply, transport, store, blend and convert physical commodities around the world.  These capabilities enable EDF Trading to deliver essential asset optimisation services, risk management and wholesale market access to the EDF Group and its third party customers, helping them to realise the value inherent in their asset portfolios.

EDF Trading is active in the electricity, natural gas, LNG, LPG, coal and freight and environmental products markets.  It is one of the largest wholesale market traders in Europe for power and gas, one of the main providers of energy management services for power generation companies in the US and a leading marketer of gas in North America.  It is also a leading US energy retailer for large commercial and industrial customers.

EDF Trading is a 100% owned subsidiary of EDF, Europe’s leading electricity producer.

EDF Trading has around 1000 employees with offices in the UK, Europe, Singapore, China, the United States and Canada.