Cheniere Marketing, a subsidiary of Houston-based energy company Cheniere Energy, has closed a long-term sale and purchase agreement for LNG with Korea Southern Power (KOSPO), Cheniere Energy said in a press release.
Under the agreement, Korean power generation company KOSPO will purchase around 0.4 million metric tons per annum (mtpa) of LNG from Cheniere Marketing on a delivered ex-ship basis from 2027 to 2046, though smaller annual quantities will be delivered starting 2024. The purchase price for LNG to be delivered before 2027 will be market-based, after which the price will be indexed to the Henry Hub benchmark, plus a fee, Cheniere said.
The volumes under the agreement “are subject to a positive final investment decision with respect to the first train of the Sabine Pass Liquefaction Expansion Project” of Cheniere Energy Partners LP (Cheniere Partners).
Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana. The terminal has natural gas liquefaction facilities consisting of six liquefaction trains, with a total production capacity of approximately 30 mtpa of LNG, according to the company’s website. The Sabine Pass Liquefaction 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.