Kogas to Get First US LNG Cargo in July

Kogas said June 26 that the first US LNG cargo under long term contract will arrive at its Tongyeong LNG terminal next month.

The Korean utility signed a 20-year 2.8mn mt/yr deal with Cheniere in 2012 under which the latter would supply the fuel from its Sabine Pass LNG export terminal. First supplies were expected to commence this year.

Kogas said that US LNG imports will help in diversifying its source lines and resolve trade imbalances between South Korea and the US. The company also stated that US LNG can be used as a means to control supply and demand in case of sudden change in the domestic natural gas supply and demand situation, as it can be sold to a third party.

Cheniere said June 25 that this first cargo, under its 2012-signed term contract, loaded at Sabine Pass June 2. 

Sabine Pass is expected to contribute to the recovery of domestic shipbuilding and shipping industry, Kogas said, as six newly built LNG transport vessels will be dedicated to the transportation of the fuel.

Shardul Sharma