Cheniere Energy (CQP) Unit Signs 20-Year LNG Supply Agreement with KOGAS
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Cheniere Energy Partners, L.P. (AMEX: CQP) announced today that its subsidiary, Sabine Pass Liquefaction, LLC, has entered into a liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with Korea Gas Corporation ("KOGAS") under which KOGAS has agreed to purchase approximately 3.5 million tonnes per annum ("mtpa") of LNG upon the commencement of train three operations.
Under the SPA, 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 vessels. The SPA 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. The SPA is subject to certain conditions precedent, including but not limited to Sabine Liquefaction receiving regulatory approvals, securing necessary financing arrangements and making a final investment decision to construct the second phase of the liquefaction project.
Under the SPA, 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 vessels. The SPA 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. The SPA is subject to certain conditions precedent, including but not limited to Sabine Liquefaction receiving regulatory approvals, securing necessary financing arrangements and making a final investment decision to construct the second phase of the liquefaction project.
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