Korea South-East Power and Korea Gas Corporation announced on September 5 that they signed a natural gas sales contract under the individual pricing system at the ITX conference room in Yongsan Station, Seoul.
The contract provides for Korea South-East Power to receive approximately 4.4 million tons of natural gas from Korea Gas Corporation over ten years starting in 2027.
Unlike the previous average pricing system, which supplied LNG to power companies at a uniform price based on the average of all import contracts, the individual pricing system links specific import contracts to specific power generators, applying the original terms and conditions of those contracts.
Korea South-East Power stated that the deal would diversify its supply portfolio beyond direct imports of natural gas, creating a basis for more economical and stable LNG supply.
Korea South-East Power Co., Ltd. (KOEN) is a government-owned power generation company established in 2001 following the restructuring of Korea Electric Power Corporation (KEPCO). It operates thermal, hydro, wind, and solar power plants across South Korea and abroad.
Korea Gas Corporation (KOGAS) is a public corporation founded in 1983 under the Ministry of Trade, Industry and Energy of South Korea. It is the world’s largest LNG importer and operates LNG terminals, pipelines, and storage facilities across the country.