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SAFETY4SEA

Cheniere and KOSPO join forces for LNG sale and purchase

by The Editorial Team
May 17, 2023
in Fuels
lng spain

Credits: Shutterstock/Image used for illustrational purposes only

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Cheniere Marketing has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement with Korea Southern Power (KOSPO).

Under the agreement, KOSPO has to purchase approximately 0.4 million tonnes per annum 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.

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The volumes associated with the agreement 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.

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 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.

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.

 

Cheniere and KOSPO join forces for LNG sale and purchaseCheniere and KOSPO join forces for LNG sale and purchase
Cheniere and KOSPO join forces for LNG sale and purchaseCheniere and KOSPO join forces for LNG sale and purchase
Tags: agreementgreen transitionKoreaLNGlng as a fuel
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