South Korean importers get LNG discounts for 2025-2027

Korea Gas Corporation (Kogas) and POSCO International finalize short-term LNG contracts for 2025-2027, with significant discounts on the JKM index, optimizing their supply strategy in a tight market.

Partagez:

South Korean importers, notably Korea Gas Corporation (Kogas) and POSCO International, have recently signed liquefied natural gas (LNG) contracts for the period 2025-2027.
These strategically-negotiated contracts include substantial discounts on the JKM (Japan-Korea Marker) index, translating into reductions of between 20 and 50 cents per million British Thermal Units (MMBtu).
This move comes at a time when buyers are seeking to protect themselves against fluctuations in the prices of Brent and Henry Hub, two other benchmarks on the global LNG market.

Greater flexibility for competitive prices

Kogas was able to exploit a flexible approach to negotiations, resulting in more attractive offers.
Sellers were encouraged to offer discounts through extended delivery terms, including a wider choice of discharge ports, extended delivery windows, and relaxed quality specifications.
This flexibility, though complex to manage, enabled Kogas to secure lower prices than those generally observed on the market.
POSCO International launched a tender in July 2024 for cargoes to be delivered between September 2025 and August 2026.
The discounts obtained, although slightly lower than those of Kogas, reflect a similar desire to benefit from the most advantageous pricing conditions for short-term contracts.
The specific nature of South Korea’s infrastructure, in particular the constraints associated with the Gwangyang terminal, also influenced the negotiations.

Anticipating and managing risks

South Korean importers’ purchasing strategies are now focused on optimizing short-term contracts, while anticipating a significant increase in global LNG supply from 2027 onwards.
The preference given to the JKM index for contracts from 2025-2027 secures more stable pricing conditions, in a market where volatility risks remain high.
With forecasts indicating the arrival of almost 200 million additional tonnes of LNG by 2030, South Korean buyers are striving to adapt their strategies to maximize their competitiveness.
Cost management, in particular through appropriate pricing mechanisms and rigorous negotiations, is an essential lever in this transition phase.

  • Populaires ​
Algeria and Angola strengthen energy cooperation at US–Africa summit
EDF Power Solutions wins major energy storage contract in Japan
Plenitude and Modine launch 1.585 MWp solar power plant in Italy
China and the United States improve their energy performance in an unstable global context
Renewable energy: access improving, but financing still insufficient for Africa
DNO secures USD 500 million financing linked to Norwegian gas
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG raises $575mn through bond issuance and repurchases shares
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell ships first LNG cargo from its LNG Canada facility
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
Australia considers east coast gas reservation as market pressures intensify
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The drilling fluids industry will reach $10.7bn by 2032 driven by oil expansion and chemical innovations
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
Enbridge Gas Ohio challenges tariff ruling cutting its revenues by $30mn
Enbridge Gas Ohio is assessing its legal options following the Ohio regulator's decision to cut its revenues, citing potential threats to investment and future customer costs.
Global small-scale LNG market to reach $31.78bn by 2030
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
Europe extends gas storage obligations until 2027
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Chevron and Energy Transfer Expand Their LNG Agreement at Lake Charles
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside completes sale of 40% stake in Louisiana LNG project to Stonepeak
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic takes over Royal Helium and fast-tracks Steveville plant restart
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
Fusion Fuel: Al Shola Gas secures AED4.4 mn ($1.2 mn) in contracts
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy Approves Expansion of Corpus Christi LNG Terminal for 2029
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
LNG industry could reduce emissions by 60%, according to IEA
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe accelerates gas storage filling despite declining reserves
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
Seoul freezes electricity rates amid LNG supply risk concerns
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia ready to deliver liquefied natural gas to Mexico
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel resumes gas exports to Egypt and Jordan
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal Identifies Major Methane Reserve Estimated at 112 Billion m³
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas and JOGMEC Sign Strategic Agreement around LNG Canada Project
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS