With demand surging, Kogas continues to sign contracts for additional supplies, though most of the new LNG term contracts in the past few years have included more flexibility for the purchaser in terms of the ability to lower volumes if necessary. Kogas most recent supply agreement was signed in July 2005 with Sakhalin Energy, a joint venture with Russian companies backed by Shell, for supplies from the Sakhalin-2 project for 20 years beginning in 2008.
South Korea is increasing capacity at its existing terminals (Pyongtaek, Inchon, Tongyeong). Also, Mitsubishi Corporation of Japan and Pohang Iron and Steel Corporation recently completed an additional terminal at Kwangyang.  Construction of the facility started in June 2002, and it began commercial operation in June 2005.