Cheniere In Long-term LNG Deal With Korea Southern Power

(RTTNews) - Cheniere Energy, Inc. (LNG), a liquefied natural gas or LNG company, said on Tuesday that its unit, Cheniere Marketing International LLP, has entered into a long-term LNG sale and purchase agreement or SPA with Korea Southern Power Co. Ltd or KOSPO.

KOSPO has agreed to purchase around 0.4 million tons per annum or 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 prior to 2027 will be a market-based price, after which the price will be indexed to the Henry Hub price with a fee.

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 (SPL) Expansion Project.

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.