SEOUL, Jan. 8 (UPI) -- State-owned Korea Gas Corp. said it formalized a deal to sell French energy company Total liquefied natural gas from a terminal in the United States.
The Asian company, known also as Kogas, formalized an agreement to resell 700,000 tons of LNG out of the 3.5 million tons it will secure from the Sabine Pass terminal in the United States starting in 2017, Kogas told the Platts energy news website.
In a report published Tuesday, Platts reported Kogas will take the remaining 2.8 million tons it secures from Sabine Pass each year home to help stabilize the South Korean energy market.
The deal follows the passage of New Year's Eve legislation in Seoul that allows LNG importers to resell parts of their secured gas to overseas markets. The legislation reverses a law enacted in the 1990s that limits LNG sales to the South Korean market, Platts reported.
Total first announced plans for the deal in September 2012.
The South Korean government estimates its demand for natural gas will increase 1.7 percent per year on average to 35.3 million tons of oil equivalent in 2035 when compared to 2011 levels.