Cheniere inks 20-year LNG supply deal with South Korea’s Posco

US LNG exporting giant Cheniere has signed a 20-year deal with a unit of South Korean steel producer Posco to supply the latter with liquefied natural gas from the proposed Corpus Christi expansion project in Texas.

Under the sales and purchase agreement, Cheniere Marketing will supply about 0.4 million tonnes per annum (mtpa) of LNG to Posco International on a free-on-board basis, beginning in late 2026.

Also, the Henry Hub-linked LNG deal would include a fixed liquefaction fee, Cheniere said in a statement on Wednesday.

Posco operates the 5.2 mtpa Gwangyang LNG terminal, South Korea’s first private LNG import facility, and the firm is adding new LNG tanks to the facility. Following completion in 2025, the terminal will have in total of eight tanks.

“FID this summer”

Cheniere said the new deal with Posco remains subject to the company making a positive final investment decision to construct the Corpus Christi Stage III Project.

Moreover, Cheniere’s CEO Jack Fusco said in the statement that this SPA with POSCO “further evidences the growing demand for long-term LNG supply”.

“The SPA is expected to provide additional support to the Corpus Christi Stage III Project, on which we expect to reach FID this summer,” he said.

The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.

Under the expansion, Cheniere plans to add up to seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa, with a total production capacity of more than 10 mtpa.

Cheniere recently won an extension from FERC to build the expansion project by June 30, 2027.

In addition, Cheniere awarded earlier this year a lump sum, turnkey, engineering, procurement and construction contract to compatriot Bechtel for the expansion.

Bechtel has already begun early engineering, procurement and other site works under limited notice to proceed.

Most Popular

Posco International, Glenfarne ink Alaska LNG pact

US energy firm Glenfarne and Posco International, a unit of South Korean steel producer Posco, have signed a deal to advance a strategic partnership for the development of the Alaska LNG project. This includes initial terms for a long-term heads of agreement for LNG supply.

Hudong-Zhonghua gets approvals for new LNG bunkering vessel

Chinese shipbuilder Hudong-Zhonghua has received approvals from five classification societies for a 25,000-cbm LNG bunkering vessel design it jointly developed with French LNG containment specialist GTT.

Monkey Island LNG pens offtake MoU

Houston-based Monkey Island LNG, the developer of a 26 mtpa liquefaction and export facility in Cameron Parish, Louisiana, said it had signed a memorandum of understanding with an unidentified international oil company for the offtake of LNG.

More News Like This

Posco International, Glenfarne ink Alaska LNG pact

US energy firm Glenfarne and Posco International, a unit of South Korean steel producer Posco, have signed a deal to advance a strategic partnership for the development of the Alaska LNG project. This includes initial terms for a long-term heads of agreement for LNG supply.

Cheniere clinches Botas LNG supply deal

Turkiye’s state-owned natural gas and LNG firm Botas has signed a deal to buy liquefied natural gas from US LNG exporting giant Cheniere. Botas also signed deals with SEFE, Equinor, and jera.

Cheniere’s Corpus Christi expansion project almost 88 percent complete

The Stage 3 expansion project at Cheniere’s Corpus Christi LNG export plant in Texas is almost 88 percent complete, while Cheniere has also started site preparation activities for two more midscale trains.

Trafigura, Kogas seal long-term US LNG supply deal

LNG trader Trafigura has signed a long-term deal to supply US LNG to South Korean importer Kogas.