Argus reported that Repsol YPF has signed a 15 month contract to sell LNG to South Korea's state controlled Kogas, in the first Asian supply deal for the Spanish company.

The 1.9 billion cubic meters of gas equivalent term agreement took effect in January 2011, and the LNG will be shipped from the 4.4 million tonnes per annum Peru liquefaction plant and terminal, which was commissioned in June 2010 and for which Repsol YPF markets all output.

Until now, all of the Peruvian facility's output has been sold to the Americas and European markets.

Repsol YPF expects that the start of operations at the Peru LNG facility will enable it to increase by 50% its LNG shipping volumes this year. The company shipped around 9 billion cubic meters of gas equivalent last year.

The company said two thirds of the Peru plant's output has been reserved for the Manzanillo LNG receiving terminal on Mexico's west coast. Manzanillo is scheduled to begin operating in the final quarter of 2011.

(Sourced from www.argusmedia.com)