Cheniere strikes LNG supply deal with Korea Southern Power
May 16 (Reuters) - Cheniere Energy Inc said on Tuesday it has entered a long-term deal to supply liquefied natural gas (LNG) to Korea Southern Power Co Ltd.
The top U.S. exporter of LNG shipped a total of 638 cargoes last year, with over 70% delivered to Europe, and said in March it expects to ship more LNG to Asia this year.
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Korea Southern Power will buy about 0.4 million tonnes of LNG per annum from Cheniere from 2027 through 2046, with a smaller annual quantity to be delivered starting in 2024.
The LNG to be delivered prior to 2027 will be market-based pricing, after which it will be indexed to the Henry Hub price, plus a fee.
Cheniere said the long-term deal will support its Sabine Pass expansion project in Louisiana.
(Reporting by Arunima Kumar in Bengaluru; Editing by Krishna Chandra Eluri)