Cheniere Energy Inc.'s subsidiary, Cheniere Marketing LLC, entered into an LNG sale and purchase agreement (SPA) with POSCO International Corp., a subsidiary of South Korean steelmaker and LNG terminal owner POSCO Holdings Inc., according to a press release on May 25.
The agreement is subject to Cheniere making a positive final investment decision to construct the Corpus Christi Stage III Project, which is being developed to include up to seven midscale liquefaction trains with a total expected nominal production capacity of over 10 million tonnes per annum.
Under the agreement, POSCO International has agreed to purchase approximately 400,000 tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis for a term of 20 years beginning in late 2026. The purchase price for LNG is indexed to the Henry Hub price, plus a fixed liquefaction fee.
“The signing of this SPA further evidences the growing demand for long-term LNG supply and highlights Cheniere’s leadership in providing flexible, cleaner burning energy supply to meet both the energy security needs and environmental goals of our customers," Cheniere president and CEO Jack Fusco commented in the release. "The SPA is expected to provide additional support to the Corpus Christi Stage III Project, on which we expect to reach FID [final investment decision] this summer.”