Korea Takes Short-Term LNG Path While Rivals Embrace Long Deals
- Kogas focuses on short contracts, spot supply amid high prices
- In contrast, rivals rush to ink deals to boost energy security
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South Korea is avoiding the global trend toward long-term agreements on liquefied natural gas due to high prices, a risky move that will leave the top importer exposed to the volatile spot market.
State-owned Korea Gas Corp. plans to rely on short-term deals or spot purchases to fill its supply needs, the energy ministry said. The company is facing a supply shortfall of almost 5.5 million tons beginning in 2025, after existing long-term contracts from Qatar and Oman expire, according to data from Kogas.