Cheniere Energy Partners has signed a deal with Korea Gas (KOGAS) for the sale of 3.5 million tonnes of liquefied natural gas (LNG) from the Sabine Pass terminal in Louisiana, US, a unit of Cheniere.
Under the 20-year deal - which has an extension option of up to ten years - KOGAS will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price, plus a fixed component.
"KOGAS is a strong addition to our portfolio of customers as it is the largest LNG importer in the world and the dominant gas provider for the Republic of Korea, a nation that is soon to become a Free Trade Nation with the US," said Cheniere chairman and CEO Charif Souki.
"We look forward to finalizing all necessary steps in order to begin construction of the first phase of our project early this year and more importantly, to becoming the first LNG exporter in the Continental US."
The first deliveries are due to take place as early as 2017.
The agreement is subject to conditions, including the company obtaining regulatory approvals, securing financing arrangements and taking a final investment decision to build the second phase of the liquefaction project.
The Cheniere unit is developing a liquefaction project at the Sabine Pass LNG terminal in the US Gulf Coast region.
The facility would include four liquefaction trains, each with a nominal capacity of about 4.5 million tonnes per year.
The company will build the liquefaction project in phases. Construction will begin this year with the first phase of two trains.