EDF Trading, an EDF unit, and South Korea’s Kogas have signed an LNG capacity and optimization agreement on Tuesday.
The deal enables Kogas’ participation in the European LNG market through market access provided by EDF Trading, the company said in a statement.
John Rittenhouse, Chief Executive of EDF Trading said, “We also hope to be able to provide Kogas with hedging and risk management services which will help reduce the cost of supplies to the South Korean market.”
With the increasing uncertainties in the domestic and global market, Kogas is looking to cope with the challenges, as a single aggregator in Korea and one of the key suppliers, to handle equity volume from its own LNG projects.
“In that sense, this optimisation agreement would enable us to reduce the LNG procurement cost as well as manage the imbalanced market situation on a flexible basis,” said Seung-Hoon Lee, President of Kogas.
Image: EDF Trading