Energy

South Korea signs 20-year LNG deal with Qatar

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Part of the flag of Qatar is seen in this picture illustration June 5, 2017. REUTERS/Thomas White/Illustration

SEOUL, July 12 (Reuters) - South Korea's energy ministry said on Monday it had signed a 20-year liquefied natural gas (LNG) supply agreement with Qatar for the next 20 years starting in 2025.

South Korea's state-run Korea Gas Corp (036460.KS) will buy 2 million tonnes of LNG annually from Qatar Petroleum (QATPE.UL).

"This long-term contract is considered to have favourable contract conditions, which would help stabilise LNG supply as well as to significantly drop fees," the ministry said in a statement.

It did not provide financial details of the agreement.

The energy ministry added that KOGAS buys 9 million tonnes of LNG annually from Qatar through long-term contracts and a contract worth 4.9 million tonnes of LNG is expected to end in 2024.

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Reporting by Sangmi Cha, Heekyong Yang; editing by Louise Heavens

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