Under the terms of the SPA, Cheniere has agreed to supply US-sourced LNG to KOGAS from its Sabine Pass liquefaction facility in Louisiana, US. The agreement was signed in January 2012, and commenced on 1 June 2017, with the first cargo loading the following day.
Under the agreement, Cheniere will sell and make available for delivery to KOGAS approximately 3.5 million tpy of LNG, representing over 10% of South Korea’s total annual demand.
The President and CEO of Cheniere, Jack Fusco, said: “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.
"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."
The President and CEO of KOGAS, Seung-Hoon Lee, added: “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."