US liquefied natural gas (LNG) developer Cheniere Energy will supply 0.4 million tonnes per year of LNG to South Korea’s POSCO International Corporation, owner of the Asian nation’s first private LNG import terminal, under a new long-term deal.
The 20-year contract will start in 2026 subject to Cheniere taking a final investment decision (FID) to build the Corpus Christi Stage III project. South Korea’s largest steel maker will pay for the LNG under a sales and purchase agreement indexed to Henry Hub pricing, plus a fixed liquefaction fee.
Cheniere said it hopes to reach a positive FID on the LNG export project this summer. The Corpus Christi Stage III is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of over 10 million t/y.
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 million t/y of LNG in operation.