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.
"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.