Cheniere, Korea's POSCO sign LNG deal
Cheniere Energy on May 25 announced that its subsidiary, Cheniere Marketing, has entered into an LNG sale and purchase agreement (SPA) with POSCO International Corp, a subsidiary of South Korea’s POSCO Holdings.
Under the agreement, POSCO International will purchase approximately 0.4mn metric tons/year of LNG from Cheniere Marketing on a free-on-board basis for a term of 20 years beginning in late 2026. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee, Cheniere said. POSCO is the owner of South Korea's first private LNG terminal.
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"The SPA is expected to provide additional support to the Corpus Christi Stage III project, on which we expect to reach a final investment decision this summer,” said Cheniere CEO Jack Fusco.
The SPA is subject to Cheniere making a positive final investment decision to construct the Corpus Christi Stage III project. The Corpus Christi Stage III project is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of over 10mn mt/yr.
The Cheniere-POSCO deal comes a day after another Korean company, Hanwha Energy, signed an agreement with French major TotalEnergies for the supply of 600,000 mt/yr of LNG for 15 years, beginning in 2024.