South Korea's KOGAS and Japan's JERA Sign LNG Supply Cooperation Agreement

South Korea’s Korea Gas Corporation (KOGAS) and Japan’s JERA have signed a new LNG supply cooperation agreement, aimed at stabilizing and improving the efficiency of LNG procurement and supply. The deal was announced as part of ongoing efforts to strengthen energy security for both countries.

The signing was witnessed by South Korea’s Minister of Trade, Industry and Energy, Kim Jeong-kwan; Akazawa Ryosei, State Minister for Economic and Industrial Policy at Japan’s Ministry of Economy, Trade and Industry (METI); KOGAS President Choi Yeon-hye; and JERA CEO Yukio Kani. The presence of senior policymakers and executives underscores the importance of LNG security and reliability for both economies.

Under the agreement, KOGAS and JERA plan to establish a practical cooperation framework for LNG supply management and to hold regular meetings to discuss supply arrangements and joint response measures. The parties said the arrangement aims to ensure stable natural gas supply amid global energy-market volatility.

The companies have been expanding cooperation since signing a memorandum of understanding on LNG cooperation in 2023. Notably, in June they discussed LNG quantity exchanges at the 2025 LNG Producers and Buyers Conference (PCC) held in Japan, and progressed to a cargo swap deal as part of that dialogue.

The move comes as geostrategic tensions and energy-security concerns rise, including the potential disruption of the Strait of Hormuz. Officials cited the need to prepare for such risks and to strengthen resilience in LNG supply chains serving critical markets in Asia.

For U.S. readers, the agreement signals deeper, formalized cooperation among major East Asian LNG buyers. As the United States expands LNG production and export capacity, strong downstream demand from Korea and Japan—coupled with joint procurement strategies—can influence global LNG pricing, shipping patterns, and the availability of LNG on international markets that feed into U.S. energy prices and supply chains.

To provide context, KOGAS is Korea’s state-controlled gas importer and wholesaler, responsible for securing LNG for Korea’s energy needs. JERA is Japan’s largest LNG buyer and a major energy supplier, operating as a joint venture between TEPCO Fuel & Power and Chubu Electric Power. The PCC is an industry forum where LNG producers and buyers discuss market developments and collaboration opportunities.