South Korean Energy Giants Team Up for Major LNG Purchase

Three of South Korea’s leading energy firms are joining forces to secure a massive liquefied natural gas (LNG) shipment, signaling continued demand in one of Asia’s most critical energy markets. Korea Midland Power (KOMIPO), Korea Southern Power (KOSPO), and PRISM Energy International have launched a joint tender for a single LNG cargo, set for delivery in mid-to-late June.

The Deal’s Key Details

The tender seeks between 3 and 3.6 trillion British thermal units (Btu) of LNG, with pricing tied to the Japan Korea Marker (JKM), Asia’s benchmark spot price for LNG. The deal will be structured on a delivered ex-ship (DES) basis, meaning the seller handles transportation to one of four designated terminals operated by Korea Gas Corporation (Kogas).

“This tender highlights South Korea’s strategic approach to securing flexible LNG supplies amid fluctuating global demand,” said an industry analyst familiar with the deal.

Delivery is slated for either June 12 or June 23, with the cargo destined for one of the following Kogas-operated terminals: Incheon, Pyeongtaek, Tongyeong, or Samcheok. The tender closes on May 7, giving suppliers a tight window to respond.

How the LNG Will Be Divided

Once the shipment arrives, the three companies will split the cargo according to prearranged allocations. KOMIPO will take the largest share at 950,000 million Btu (mmBtu), followed by PRISM Energy International at 720,000 mmBtu. KOSPO will receive the remaining volume, though the exact figure depends on the final size of the procured cargo.

The JKM-linked pricing structure ensures the deal remains competitive with regional benchmarks, a common strategy for South Korean buyers navigating volatile energy markets. JKM has become the go-to reference for spot LNG transactions in Asia, offering transparency in a market once dominated by long-term oil-indexed contracts.

Why This Matters

South Korea, the world’s third-largest LNG importer, relies heavily on the super-chilled fuel for power generation and industrial use. This joint tender underscores the country’s preference for collaborative procurement, allowing smaller players to pool resources and negotiate better terms. It also reflects a broader trend of Asian buyers diversifying supply sources amid geopolitical uncertainties and shifting trade flows.

With the tender deadline just days away, all eyes are on which supplier will clinch the deal—and at what price. The outcome could set the tone for mid-year LNG trading across the region.