South Korea’s Kogas, world’s largest corporate buyer of LNG, has reportedly formalized a deal to resell 700,000 mt/year of LNG from U.S. Sabine Pass terminal to Total for 20 years starting 2017.
“The price will be linked to the Henry Hub gas price,” Platts cited a Kogas official as saying.
“The selling price will be same as the price Kogas imports from the Sabine Pass project,” he added.
The volume will be part of a deal that Kogas signed with Sabine Pass Liquefaction, a Cheniere unit, under which the company has agreed to purchase approximately 3.5mt/year of LNG upon the commencement of train three operations.
The LNG deal comes following the passing of legislation in South Korea’s parliament on 31st December, that allows LNG importers to resell quantities of their gas to overseas markets.
LNG World News Staff, January 10, 2014; Image: Cheniere