Regional LNG: Korea's Kogas gets LNG supply from Malaysia, Qatar

South Korean gas distributor Korea Gas Corp. (KOGAS) said Monday it had secured 6.66 million tonnes of term supplies for the next four years from Qatar and Malaysia, agencies reported.

Kogas, which will this year import between 20 and 21 million tonnes of Liquefied Natural Gas (LNG), was also set on Monday to sign a spot contract with Malaysia LNG to buy a further 1.2 million tonnes between November 2005 and March 2008, the company said in a filing to the Korea Stock Exchange.

Kogas has been in talks with Qatar and Malaysia for LNG supplies under term contracts between October 2004 and April 2008 to meet rising local demand for the fuel before much-needed additional supplies under long-term contracts kick off from 2008.

Separately, Kogas is in talks with five bidders for a combined 5.3 million tonnes of annual supply under long-term contracts to replace a long-term contract with Indonesia due to expire in 2007, and secure extra supply to meet rising demand starting from 2008. Long-term contracts last for 15-20 years.

"The new short-term and spot contracts under which KOGAS secured a total of 131 cargoes was expected to contribute to stable supplies of the fuel in the coming years," the company said.

It added that most of the cargoes would be supplied in winter time when the country's LNG demand for heating reaches its peak.

The gas monopoly of South Korea had signed a contract on November 21 with Ras Laffan Liquefied Natural Gas Co. for total supply of 3.84 million tonnes, or 64 cargoes, between October 2004 and April 2008, it said.

Kogas would sign a contract with Malaysia LNG TIGA on Wednesday for supply of 2.82 million tonnes of LNG in total, or 47 cargoes, during the same period, it said.

The company, South Korea's sole LNG importer and wholesaler, imports 19.4 million tonnes of LNG every year under long- and medium-term supply contracts with Indonesia, Malaysia, Oman, Brunei, Qatar and Australia.(*)