Vitol and South Korea's Komipo Team Up for LNG Exploration

Vitol and Korea Midland Power (KOMIPO) announced February 27 that they have agreed to explore LNG opportunities.

The British-based energy trader has signed a memorandum of understanding with the subsidiary of Korea Electric Power Corporation to explore upstream, midstream and downstream project opportunities in liquefied natural gas. Under an existing long-term supply and purchase agreement signed in 2015, Vitol agreed to supply KOMIPO with 400,000 tons/yr of LNG for 10 years.

“KOMIPO looks forward to developing its relationship with Vitol, our trusted partner in the LNG business,” said CEO Hyung Koo Park.

CEO of Vitol Group, Russell Hardy, added: “We are delighted to strengthen our partnership with KOMIPO.” The world’s largest energy trader, Vitol delivered over 7.4mn mt of LNG in 2017.

KOMIPO is the leading public energy company responsible for about 8% of domestic power supply, generating and supplying electricity across South Korea. Around 20% of the country’s power generation comes from gas, but Seoul is seeking to expand that share in a bid to reduce reliance on coal (40%) and nuclear (30%). Starting in April, taxes will fall on LNG while rising on coal.