Cheniere Energy Inc. subsidiary Cheniere Marketing International LLP signed a long-term LNG supply agreement with Korea Southern Power Co. Ltd. (KOSPO) in support of the power company’s growing natural gas fired power generation capacity.
KOSPO will purchase about 0.4 million tonnes/year (tpy) of LNG from Cheniere on a delivered ex-ship (DES) basis from 2027 through 2046, with a smaller annual quantity to be delivered starting in 2024, Cheniere said in a release May 16.
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.
Volumes associated with the agreement from 2028 through 2046 are subject to a positive final investment decision of the first train of the proposed Sabine Pass Stage 5 Expansion Project adjacent to the existing Sabine Pass liquefaction project in Cameron Parish, La.
The project is being developed to expand production capacity up to 20 million tpy of LNG via three large-scale 6.5 million tpy trains, a boil-off-gas re-liquefaction unit with production capacity of about 0.75 million tpy of LNG, and two 220,000 cu m LNG storage tanks.
In February 2023, subsidiaries of Cheniere Energy Partners LP initiated the pre-filing review process with the Federal Energy Regulatory Commission under the National Environmental Policy Act (OGJ Online, Feb. 23, 2023).