Cheniere Strikes Long-Term LNG Supply Deal With South Korea's Posco

By Robb M. Stewart

Cheniere Energy Inc. has agreed to a long-term liquefied natural gas supply deal with a subsidiary of South Korean steelmaker Posco Holdings Inc.

The energy company said Posco International Corp. has agreed to buy about 400,000 metric tons of LNG a year for a term of 20 years, beginning in late 2026. The price for the super-chilled gas under the agreement is indexed to the Henry Hub price, plus a fixed liquefaction fee, Cheniere said.

Cheniere's agreement was announced the same day Sempra said it entered a heads of agreement to supply about 2.25 million metric tons a year of liquefied natural gas to German energy company RWE AG, which will come from the first phase of the Port Arthur LNG project being developed in Texas. Phase one of the project is expected to include two liquefaction lines and storage tanks, and facilities able to produce up to about 13.5 million tons a year of LNG.

Cheniere said the supply deal with Posco is subject to a final investment decision to build the Corpus Christi Stage III project, which is being developed to include up to seven midscale liquefaction lines with a total expected nominal production capacity of more than 10 million tons a year.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

May 25, 2022 08:40 ET (12:40 GMT)

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