Australian independent Woodside Energy and South Korea's state-owned Kogas have agreed a sales and purchase deal for term supplies of LNG to South Korea.
The deal for 500,000 t/yr on a des basis will start in 2026 and run for 10½ years, Woodside said on 28 February. The LNG will come from uncommitted volumes across the firm's portfolio, including the $12bn Scarborough project that is targeting its first gas supplies in 2026.
The agreement with Kogas is Woodside's first term supply deal with South Korea, the world's third-largest LNG market after China and Japan.
Woodside and Kogas were possibly in negotiations in January for a term contract at a 12.6pc slope to Brent crude prices. LNG volumes signed under term contracts from publicly disclosed supply agreements rose in 2023 to 69mn t/yr from 63.9mn t/yr in 2022, with US-based projects contracting the most LNG for a second successive year.
Scarborough has already attracted Japanese investment with Japanese LNG importer Jera to acquire a 15.1pc stake in the gas field offshore Western Australia state. Jera also agreed to buy around 400,000 t/yr for 10 years, beginning April 2026.
Woodside also sold in August last year 10pc of the 13 trillion ft³ (368bn m³) Scarborough project to LNG Japan, a 50:50 joint venture between trading houses Sumitomo and Sojitz.
Scarborough aims to produce 8mn t/yr of LNG through the Woodside-operated 4.9mn t/yr Pluto LNG and a second 5mn t/yr train at Pluto currently under construction.
