The two companies have signed a Memorandum of Understanding (MoU) aimed at stabilising the supply of LNG following the war of Ukraine last year.

“The wars of Ukraine has created a severe energy environment, such as the reduction of pipeline gas supply to Europe, and the uncertainty regarding global energy supply is drastically increasing,” JERA noted.

The demand for LNG in Europe caused a huge spike both in gas prices and spot shipping rates last year, and both remain high if having cooled significantly.

In responding to this situation JERA and KOGAS plan to strengthen their relationship and areas for possible collaboration under the MoU include LNG swaps, trading, shipping optimisation, and market view exchange.