South Korea, the world's third-biggest importer of liquefied natural gas, is going to buy more LNG from the U.S. starting in 2025.
Korea's state-run gas company signed a deal with BP on Tuesday.
Kim Hyesung reports.
South Korea will purchase nine-point-six billion U.S. dollars of U.S. liquefied natural gas over the course of 18 years starting 2025.
According to the trade ministry on Tuesday, the state-run Korea Gas Corporation has signed an agreement with BP to buy 1-point-58 million tons of LNG from the U.S.
The 15-year deal, which can be extended to 18 years at a seller's option, is the first long-term LNG purchase contract signed between Korea and the U.S. during the Trump Administration.
President Moon Jae-in also referred to the deal in his meeting with President Trump in New York.
"During my visit, we have decided to purchase more LNG from the U.S., and Korea's auto industry will make a joint venture with a U.S. autonomous vehicle company. I believe that all this will help further enhance the Korea-U.S. alliance."
Data by the Korea International Trade Association shows South Korea is the world's third largest LNG importer and mainly purchases LNG from Qatar and Australia.
This latest deal is expected to help Korea diversify its sources of LNG.
Bilateral energy trade between Korea and the U.S. has grown seven-fold since 2016 and Korea has been the number one importer of U.S. LNG since 2018, surpassing Mexico and Japan.
The trade ministry says U.S. LNG imports are expected to increase from 10-point-six percent in 2018 to near 23 percent by 2025.
Kim Hyesung, Arirang News.