South Korea’s S-Oil inks 15-year LNG supply deal with Petronas

South Korean energy company S-Oil has signed a 15-year liquefied natural gas supply deal with the Malaysian LNG giant Petronas. 

According to a company’s filing to the stock exchange, deliveries under the contract are set to start in April 2018 until March 2033.

Petronas has agreed to deliver 700,000 tons of LNG per year for the duration of the contract.

The LNG volumes delivered by Petronas have been contracted to cover the company’s demand for the fuel that is increasing with the expansion of its facilities.

Although S-Oil declined to disclose the contract value, it has said in its filing that it has “taken advantage of the favorable LNG market conditions.”