Cheniere Marketing International, a wholly-owned subsidiary of Cheniere Energy, has signed a long-term liquefied natural gas (LNG) sale and purchase agreement with Korea Southern Power (KOSPO).
Cheniere Energy is an LNG company based in Houston, Texas, with offices in London, Singapore, Beijing, Tokyo, and Washington, D.C. KOSPO is a Korean public energy firm that spun off from Korea Electric Power in 2002.
Under the deal, KOSPO has committed to buying around 0.4 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a delivered ex-ship basis. The agreement spans from 2027 to 2046, with a smaller quantity to be delivered from 2024 onwards. The purchase price will be market-based until 2027, after which it will be indexed to the Henry Hub price, plus a fee.
The volumes associated with the agreement from 2028 to 2046 are contingent upon a positive final investment decision for the first train of Cheniere’s Sabine Pass Liquefaction (SPL) Expansion Project.
The SPL Expansion Project is currently being developed and is expected to feature up to three LNG trains. Once operational, it is expected to have a combined capacity of approximately 20 mtpa, Cheniere says. In February 2023, subsidiaries of Cheniere Energy Partners initiated the pre-filing review process for the project with the Federal Energy Regulatory Commission.
“This SPA is expected to support the SPL Expansion Project, and we are excited to build commercial momentum as the project’s development progresses,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “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 U.S. recently ascended to the top spot among global LNG exporters. Companies with liquefaction and export terminal facilities along the Gulf Coast are signing long-term supply deals with regions such as Europe, Africa and Asia.
