Platts: Korea Gas formalizes deal to resell part of US Sabine Pass LNG to Total

State-owned Korea Gas Corp has formalized an agreement with Total to resell 700,000 mt/year of LNG to Total out of 3.5 million mt/year the South Korean utility will buy from the US Sabine Pass project from 2017, a Kogas official told Platts Monday.

Kogas and Total Gas & Power North America signed a formal accord on December 31, under which the South Korean company will resell 700,000 mt/year of US LNG to Total for 20 years starting 2017.

"The price will be linked to the Henry Hub gas price," the official said. "The selling price will be same as the price Kogas imports from the Sabine Pass project," he added.

The volume will be part of 3.5 million mt/year of US LNG that Kogas plans to import for 20 years beginning 2017 from the Sabine Pass project. Under the deal, Kogas was to take 2.8 million mt/year while Total was to get the remaining 700,000 mt/year, according to the Kogas official.  MORE