Cheniere and KOSPO Sign Long-Term LNG Sale and Purchase Agreement
May 16 2023 - 07:29AM
Business Wire
Long-Term SPA Expected to Support Sabine Pass
Expansion Project
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE
American: LNG) announced today that Cheniere’s subsidiary, Cheniere
Marketing International LLP (“Cheniere Marketing”), has entered
into a long-term liquefied natural gas (“LNG”) sale and purchase
agreement (“SPA”) with Korea Southern Power Co. Ltd (“KOSPO”).
Under the SPA, KOSPO has agreed to purchase approximately 0.4
million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on
a delivered ex-ship (“DES”) basis from 2027 through 2046, with a
smaller annual quantity to be delivered starting in 2024. The
purchase price for LNG to be delivered under the SPA prior to 2027
will be a market-based price, after which the purchase price will
be indexed to the Henry Hub price, plus a fee.
The volumes associated with the SPA from 2028 through 2046 are
subject to a positive final investment decision with respect to the
first train of the Sabine Pass Liquefaction Expansion Project (“SPL
Expansion Project”).
“We are pleased to enter into this long-term LNG contract with
KOSPO, the leading power generation company in Korea, in support of
KOSPO’s growing natural-gas fired power generation capacity,” said
Jack Fusco, Cheniere’s President and Chief Executive Officer. “This
SPA is expected to support the SPL Expansion Project, and we are
excited to build commercial momentum as the project’s development
progresses. This SPA further highlights Cheniere’s leadership in
providing flexible, cleaner burning energy supply to meet both the
energy security needs and environmental goals of our customers in
both the short and long term.”
The SPL Expansion Project is being developed to include up to
three natural gas liquefaction trains with an expected total
production capacity of approximately 20 mtpa of LNG. In February
2023, certain subsidiaries of Cheniere Energy Partners, L.P. (NYSE
American: CQP) initiated the pre-filing review process with respect
to the SPL Expansion Project with the Federal Energy Regulatory
Commission under the National Environmental Policy Act.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
LNG in the United States, reliably providing a clean, secure, and
affordable solution to the growing global need for natural gas.
Cheniere is a full-service LNG provider, with capabilities that
include gas procurement and transportation, liquefaction, vessel
chartering, and LNG delivery. Cheniere has one of the largest
liquefaction platforms in the world, consisting of the Sabine Pass
and Corpus Christi liquefaction facilities on the U.S. Gulf Coast,
with total production capacity of approximately 45 mtpa of LNG in
operation and an additional 10+ mtpa of expected production
capacity under construction. Cheniere is also pursuing liquefaction
expansion opportunities and other projects along the LNG value
chain. Cheniere is headquartered in Houston, Texas, and has
additional offices in London, Singapore, Beijing, Tokyo, and
Washington, D.C.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2023, filed with the Securities and
Exchange Commission.
About KOSPO
Korea Southern Power (KOSPO) is a public energy company that
spun off from Korea Electric Power Corporation in 2002. As of the
end of 2022, KOSPO accounted for approximately 9% of Korea’s total
generation capacity and power generation. In addition to efforts to
improve the environmental performance of fossil fuel use, KOSPO is
focused on providing clean and stable electricity, leading the way
to carbon neutrality in Korea, including by developing renewable
energy such as solar power, wind power, and fuel cells. KOSPO also
develops its digitalization of power plant operations, hydrogen and
ammonia convergence business. Through this, KOSPO plans to set the
global standard in the new energy industry.
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, (i) statements regarding
Cheniere’s financial and operational guidance, business strategy,
plans and objectives, including the development, construction and
operation of liquefaction facilities, (ii) statements regarding
regulatory authorization and approval expectations, (iii)
statements expressing beliefs and expectations regarding the
development of Cheniere’s LNG terminal and pipeline businesses,
including liquefaction facilities, (iv) statements regarding the
business operations and prospects of third-parties, (v) statements
regarding potential financing arrangements, (vi) statements
regarding future discussions and entry into contracts, and (vii)
statements relating to Cheniere’s capital deployment, including
intent, ability, extent, and timing of capital expenditures, debt
repayment, dividends, share repurchases and execution on the
capital allocation plan. 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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Cheniere Energy, Inc. Investors
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Media Relations Eben
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