Cheniere signs up KOGAS as Sabine Pass LNG export customer

Cheniere Energy Partners, L.P.  reports that subsidiary, Sabine Pass Liquefaction, LLC  has entered into a liquefied natural gas sale and purchase agreement  with Korea Gas Corporation (“KOGAS”) under which KOGAS has agreed to purchase approximately 3.5 million tonnes per annum  of LNG upon the commencement of train three operations at Cheniere’s Sabine Pass LNG terminal.

KOGAS will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto KOGAS’s LNG tankers. The agreement has a term of twenty years commencing upon the date of first commercial delivery for train three, and an extension option of up to ten years.  Deliveries from train three are expected to occur as early as 2017.

“KOGAS is our fourth foundation customer and we have now sold 16 mtpa of the 18 mtpa being developed at the Sabine Pass LNG terminal.  KOGAS is a strong addition to our portfolio of customers as it is the largest LNG importer in the world and the dominant gas provider for the Republic of Korea, a nation that is soon to become a Free Trade Nation with the U.S.” said Charif Souki, Chairman and CEO. “We look forward to finalizing all necessary steps in order to begin construction of the first phase of our project early this year and more importantly, to becoming the first LNG exporter in the Continental U.S.”

KOGAS is the world’s largest LNG importer and is the Republic of Korea’s dominant gas provider.  KOGAS operates three LNG terminals and a nationwide pipeline network that spans over 2,739 km. January 30, 2011

January 30, 2012