Korea Midland Power Co Ltd (KOMIPO) said it had agreed to import $3.4 billion worth of liquefied natural gas (LNG) from Vitol of Switzerland under a term contract.
The South Korean utility, fully owned by state-run Korea Electric Power Corp, will import 400,000 tonnes of LNG per year between 2015 and 2024, KOMIPO said in a statement.
The contracted annual import is equivalent to 17 percent of KOMIPO's consumption in 2011 for its power generation, the statement said, adding the deal allows it to resell the gas to a third country or increase the import volume by a buyer's option.
The import will replace the gas that KOMIPO used to buy from state-run Korea Gas Corp, the world's largest corporate buyer of LNG, the statement added.
Source: Reuters