HOUSTON and SEOUL, South Korea, June 25, 2017 /PRNewswire/ -- Cheniere
Energy Inc. (NYSE MKT: LNG) and Korea Gas Corporation (KOGAS)
today hailed the commencement of their 20-year Sales and Purchase
Agreement (SPA) to supply U.S.-sourced LNG to KOGAS from the Sabine
Pass Liquefaction facility in Louisiana. The SPA, which was originally
signed in January of 2012, officially commenced on June 1, 2017, with the first cargo loading the
following day.
Under the terms of the SPA, Cheniere shall sell and make
available for delivery to KOGAS approximately 3.5 million tonnes of
LNG per year, which represents more than 10 percent of South Korea's total annual demand.
Cheniere officials, led by CEO and President Jack Fusco, hosted KOGAS officials, led by CEO
Seung-Hoon Lee, today at Cheniere's
Sabine Pass Liquefaction facility.
"KOGAS is an ideal commercial partner as one of the
largest buyers of LNG in the world and serves South Korea, an important economic and
national ally of the United
States," said Jack Fusco,
President and CEO of Cheniere. "This is just the beginning of a
long and productive relationship that will be beneficial to both
companies and both countries, and we hope to continue to grow this
relationship between KOGAS and Cheniere."
KOGAS president & CEO Mr. Seung-Hoon Lee said, "This long-term LNG SPA
with Cheniere Energy will contribute significantly to improving the
trade balance between the United
States and Korea. Plus, the destination-free US LNG will
greatly increase the flexibility and efficiency in the global LNG
market."
KOGAS was incorporated by the Korean government in 1983 to
engage in the development, production and distribution of liquefied
natural gas. KOGAS has since grown to become one of the largest
buyers of LNG and is the Republic of Korea's dominant gas provider.
KOGAS operates four LNG terminals with the current
storage capacity of 4.84 million tons in 69 storage tanks
and a nationwide pipeline network that spans over
4,672 km. KOGAS imports LNG from around the
world and supplies it to power generation plants, gas-utility
companies and city gas companies throughout the country. It
produces and supplies natural gas, purifies and sells gas-related
by-products, builds and operates production facilities and
distribution networks, and explores for, imports and exports
natural gas for domestic and overseas markets.
In February 2016, Cheniere
became the first company to ship LNG from the contiguous
United States in over 50 years,
and is currently the only exporter of U.S. LNG. Cheniere's unique
business model provides a full-service LNG offering to customers
worldwide, which includes acquiring, transporting, and processing
pipeline gas, and providing LNG to customers either at the flange
of the LNG terminal, or on a delivered basis to markets around the
world.
Forward-Looking Statements:
This press release contains certain statements that may
include "forward-looking statements" within the meanings of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical or present facts or conditions, included herein are
"forward-looking statements." Included among "forward-looking
statements" are, among other things, statements regarding
Cheniere's business strategy, plans and objectives, including the
use of proceeds from the offering. Although Cheniere believes that
the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Cheniere's actual
results could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in Cheniere's periodic reports that are
filed with and available from the Securities and Exchange
Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws,
Cheniere does not assume a duty to update these forward-looking
statements.
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visit:http://www.prnewswire.com/news-releases/cheniere-kogas-celebrate-commencement-of-20-year-lng-contract-300479341.html
SOURCE Cheniere Energy, Inc.