Trading giant Vitol has clinched an extension of an LNG supply deal in South Korea that has already been running for 13 years.
The agreement with Korea Middle Power Co (KOMIPO) will see gas shipped in until 2028.
The original contract was signed in 2011, with deliveries commencing in 2015.
Vitol has supplied KOMIPO with more than 4m tonnes of LNG over the last decade.
From 2025 to 2028, Vitol will deliver three cargoes per year to the South Korean utility.
“The extension confirms the trust and strength of the relationship developed over years of reliable LNG deliveries,” Vitol said.
Young Jo Lee, head of KOMIPO’s planning and administration division, added: “We are pleased to extend the existing LNG sale and purchase agreement with Vitol based on mutual trust and understanding. This signing ceremony will pave the way for both parties to cement the long-term relationship.”
Vitol has traded LNG for over 16 years.
The company says it is expanding its presence globally and last year traded over 17m tonnes of LNG worldwide, up 24%.
This was part of 546m tonnes of energy delivered in 2023, a rise from 527m tonnes a year earlier on the back of natural gas, LNG and oil products volumes.
Realignment in Europe
Chief executive Russell Hardy described a realignment of European gas markets as countries pivoted away from Russian gas.
“In gas, 120bn cubic metres per annum of Russian pipeline gas, which used to flow to Europe, has, to date, been replaced by an additional 62 bcm per annum LNG and significant demand destruction,” he said in the 26 March report.
“Flows of LNG to Europe in 2023 were equivalent to half the global LNG market volume as recently as 2010, illustrating the rapid evolution of this market,” the CEO added.
