Cheniere secures long-term LNG agreement in Korea

Supply to come from Sabine Pass Liquefaction Expansion Project

Cheniere Energy’s subsidiary, Cheniere Marketing International, has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement with Korea Southern Power Co.

Under the SPA, KOSPO has agreed to purchase approximately 0.4 mtpa of LNG from Cheniere Marketing on a delivered ex-ship basis from 2027 through 2046, with a smaller annual quantity to be delivered starting in 2024. The purchase price for LNG to be delivered under the SPA prior to 2027 will be a market-based price, after which the purchase price will be indexed to the Henry Hub price, plus a fee.

Cheniere and KOSPO sign long-term LNG sale and purchase agreement. Seen here is Cheniere’s Sabine Pass LNG facility. (Image: Cheniere)

The volumes associated with the SPA from 2028 through 2046 are subject to a positive final investment decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project.

“We are pleased to enter into this long-term LNG contract with KOSPO, the leading power generation company in Korea, in support of KOSPO’s growing natural-gas fired power generation capacity,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “This SPA is expected to support the SPL Expansion Project, and we are excited to build commercial momentum as the project’s development progresses. This SPA further highlights Cheniere’s leadership in providing flexible, cleaner burning energy supply to meet both the energy security needs and environmental goals of our customers in both the short and long term.”

The SPL Expansion Project is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of approximately 20 mtpa of LNG. In February 2023, certain subsidiaries of Cheniere Energy Partners, L.P. initiated the pre-filing review process with respect to the SPL Expansion Project with the Federal Energy Regulatory Commission under the National Environmental Policy Act.

STAY CONNECTED



Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

Sign up

POWER SOURCING GUIDE

The trusted reference and buyer’s guide for 83 years

The original “desktop search engine,” guiding nearly 10,000 users in more than 90 countries it is the primary reference for specifications and details on all the components that go into engine systems.

Visit Now

CONNECT WITH THE TEAM
Becky Schultz Vice President of Content Tel: +1 480 408 9774 E-mail: [email protected]
Julian Buckley Editor Tel: +44 (0) 1892 784088 E-mail: [email protected]
Chad Elmore Managing Editor Tel: +1 262 754 4114 E-mail: [email protected]
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: [email protected]
CONNECT WITH SOCIAL MEDIA