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.

- Advertisements -

Most Popular

Hyundai Samho to build LNG carrier quartet for $1.08 billion

South Korea's Hyundai Samho has secured an order to build four liquefied natural gas (LNG) carriers for about $1.08...

Tellurian reports $166.2 million net loss in 2023

US LNG firm Tellurian reported a net loss of $166.2 million in 2023, as it continues to work on...

QatarEnergy to further boost LNG output

State-owned LNG giant QatarEnergy said on Sunday it will further boost its liquefied natural gas production from the North...

More News Like This

CEO: DOE’s permit pause will not slow down Cheniere’s LNG expansion plans

US LNG exporting giant Cheniere is going "full steam ahead" with plans to expand its Sabine Pass and Corpus...

Cheniere: 2023 net profit jumps, revenue down

US LNG exporting giant Cheniere reported a 39 percent drop in its 2023 revenue due to lower prices, while...

GasLog, Cheniere extend LNG carrier charter deal

Greek LNG shipping firm GasLog has extended a charter deal for one of its vessels with a unit of...

Cheniere’s Corpus Christi LNG expansion project more than 51 complete

US LNG exporter Cheniere and compatriot Bechtel have completed more than half of the work on the expansion phase...