Singapore-based commodity trading company Trafigura signed a long-term agreement to supply liquefied natural gas (LNG) to Korea Gas Corporation (KOGAS) – the Republic of Korea’s national gas company and a large importer of LNG.

While specific volumes were not revealed, this agreement expects “substantial volumes of LNG” to be delivered to KOGAS over the next decade with prices indexed to Henry Hub, the US natural gas benchmark, according to Trafigura.

Trafigura said it would meet this commitment through its offtake agreements with LNG producers, including Cheniere Energy, North America’s largest LNG exporter, and Trafigura’s global LNG portfolio.

The company expects the deal to strengthen its position in the global LNG market.

“The Republic of Korea is a highly valued partner for Trafigura across all our core trading divisions. This deal demonstrates our ability to connect major producers with key consumers in an increasingly complex energy landscape,” commented Richard Holtum, Trafigura chief executive officer.

“By leveraging our offtakes from US LNG companies and our global portfolio, we can provide KOGAS with the reliable energy supply that South Korea’s economy demands.”