Cheniere Inks 20-Year LNG Supply Deal with South Korea's Posco
(PG&J) — Cheniere Energy Inc. has agreed to a long-term liquefied natural gas (LNG) supply deal with a subsidiary of Posco Holdings Inc., South Korea’s largest steelmaker and owner of South Korea’s first private LNG terminal.
Under the deal, POSCO International has agreed to purchase approximately 0.4 million tonnes per annum (MTPA) of LNG from Cheniere 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.
“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,” Jack Fusco, Cheniere’s president and CEO, said. “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 FID this summer.”
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 10 MTPA.
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