South Korean shipping company Korea Line Corporation (KLC) on Friday signed a contract to transport LNG for Kogas from the United States to South Korea.
The deal has been valued at about 1.27 trillion Korean won ($1.1 billion) the company said in its filing to the stock exchange.
Under the contract, KLC will deploy two LNG carriers to transport liquefied natural gas from Cheniere’s Sabine Pass LNG plant in Louisianna to South Korea.
The contract signed on Friday, July 23, ends on May 30, 2037, corresponding with the 20-year LNG sale and purchase agreement Kogas has in place with Cheniere. Under the SPA, the world’s second-largest corporate buyer of LNG will purchase approximately 3.5 million tons per annum of LNG on a free on board (FOB) basis.
It was earlier reported that the SM Eagle, one of the two vessels to be deployed under the contract is already heading for South Korea with the first delivery under the 20-year deal.
The vessel was delivered from the South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) in April this year, followed by its 174,000-cbm sister vessels, the SM Seahawk, delivered in May.
LNG World News Staff