Kogas, Cheniere Sign LNG Deal

South Korea’s Kogas and Cheniere Energy have signed a 20 year deal in which the latter will supply LNG from Sabine Pass export plant in Louisiana.

Kogas has agreed to purchase approximately 3.5 million tonnes per annum of LNG upon the commencement of train three operations. Deliveries are expected to occur as early as 2017. 

LNG, which is natural gas cooled to a liquid for shipping, is more than five times dearer in Asia, prompting a string of U.S. export plant proposals over the past year. Concerns have been raised by consumer groups that U.S. gas prices will be pushed higher by exports.

Cheniere Partners owns 100 percent of the Sabine Pass LNG receiving terminal located on the Sabine Pass Channel in western Cameron Parish, Louisiana.  The Sabine Pass terminal has regasification and send-out capacity of 4.0 billion cubic feet per day (Bcf/d) and storage capacity of 16.9 billion cubic feet equivalent (Bcfe). 

Partners have already signed deals with BG Group, Spain’s Gas Natural Fenosa and GAIL India.