Cheniere Energy Inc. (Cheniere) and Korea Gas Corporation (KOGAS) have hailed the commencement of their 20 year sales and purchase agreement (SPA) to supply US-sourced LNG to KOGAS from the Sabine Pass Liquefaction facility in Louisiana. The SPA, which was originally signed in January of 2012, officially commenced on 1 June 2017, with the first cargo loading the following day.
Under the terms of the SPA, Cheniere shall sell and make available for delivery to KOGAS approximately 3.5 million tpy of LNG, which represents more than 10% of South Korea's total annual demand.
Cheniere officials, led by CEO and President Jack Fusco, hosted KOGAS officials, led by CEO Seung-Hoon Lee, at the Cheniere's Sabine Pass Liquefaction facility.
"KOGAS is an ideal commercial partner as one of the largest buyers of LNG in the world and serves South Korea, an important economic and national ally of the United States," said Jack Fusco, President and CEO of Cheniere. "This is just the beginning of a long and productive relationship that will be beneficial to both companies and both countries, and we hope to continue to grow this relationship between KOGAS and Cheniere."
KOGAS president & CEO Mr. Seung-Hoon Lee said, "This long-term LNG SPA with Cheniere Energy will contribute significantly to improving the trade balance between the United States and Korea. Plus, the destination-free US LNG will greatly increase the flexibility and efficiency in the global LNG market."
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/26062017/cheniere-kogas-celebrate-contract/