Cheniere Energy, Inc. (Cheniere) has announced that its subsidiary, Cheniere Marketing, LLC (Cheniere Marketing) has entered into an LNG Sales and Purchase Agreement (SPA) with POSCO International Corporation (POSCO International), a subsidiary of POSCO Holdings, Inc., South Korea’s largest steelmaker and owner of South Korea’s first private LNG terminal.
Under the SPA, POSCO International has agreed to purchase approximately 0.4 million tpy of LNG from Cheniere Marketing on a FOB 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.
“We are pleased to enter into this long-term LNG contract with POSCO International, a key player in the global industrial complex, and we look forward to a successful, long-term relationship with POSCO International as a customer,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “The signing of this SPA further evidences the growing demand for long-term LNG supply, and highlights Cheniere’s leadership in providing flexible, cleaner burning energy supply to meet both the energy security needs and environmental goals of our customers. The SPA is expected to provide additional support to the Corpus Christi Stage III Project, on which we expect to reach Final Investment Decision (FID) this summer.”
The SPA is subject to Cheniere making a positive FID to construct the Corpus Christi Stage III Project. The Corpus Christi Stage III Project is being developed to include up to seven mid scale liquefaction trains with a total expected nominal production capacity of over 10 million tpy.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30052022/cheniere-and-posco-international-sign-long-term-lng-spa/