Swiss trader Vitol has signed a $3.4 billion sales and purchase agreement with Korea Midland Power Company.
Under the 10-year SPA, Vitol will supply Komipo, which is the power generating unit of Korea Electric Power Corporation, with 400,000 tonnes per annum of LNG from 2015.
The volumes equate to around 17% of the South Korean outfit’s annual consumption, according to Vitol.
The deal is said to mark the first time a South Korean domestic public power company has strayed from Korea Gas, which has always been the sole supplier of LNG to Kepco.
