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LONDON (Reuters) - South Korea's state run Korea Gas Corp (KOGAS) signed on Wednesday a memorandum of understanding (MoU) with France's TotalEnergies to enhance liquefied natural gas (LNG) trading and optimization as it seeks to boost the Asian country's energy security.
The agreement will create a formal framework for long-term cooperation to discuss and explore the development of a joint business relationship the two company's resources and strengthen their business capabilities, KOGAS said in a statement sent to Reuters.
"The two companies, directly and through their affiliates Kogas International (KI) and TotalEnergies Gas and Power Asia (TEGPA), have a strong track record of cooperation in LNG procurement for the Korean market and in optimising Kogas volumes out of Sabine Pass in the United States," it said.
The two companies will also explore the development of potential projects and business transactions involving renewable and low-carbon hydrogen, and their derivatives value chain businesses.
South Korea's consumption of LNG is expected to remain robust as the country, which relies heavily on gas for power generation, seeks to move away from coal and nuclear power.
(Reporting by Marwa Rashad; Editing by Tomasz Janowski)