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Korea Gas. the largest natural gas buyer in South Korea. is talking to Cheniere Energy about the possibility of acquiring additional capacity from the LNG exporter that would help it commercialize two liquefaction trains for which it has permits but has not yet made a final decision to build. CEO Seung-Hun Lee said Sunday.
The comments during a small gathering at Cheniere`s Sabine Pass terminal in Louisiana to mark the commencement of a 20-year sales and purchase agreement for KoGas to take LNG from the facility highlight the aggressive marketing the company is doing to reach new deals. just as it faces growing competition from other US developers along the Gulf. Atlantic and Pacific coasts.
With the SM Eagle tanker expected to arrive in South Korea on July 1 with the first shipment of LNG from Sabine Pass` train 3 under the SPA signed in 2012. executives from Cheniere and KoGas said they want to build on their commercial relationship.
Cheniere is seeking offtakers for train 6 at Sabine Pass and train 3 at its Corpus Christi. Texas. export terminal before deciding whether to move forward with those units.
KoGas` current agreement with Cheniere calls for the exporter to deliver about 450 MMcf d of LNG. representing more than 10% of South Korea`s total annual demand.
`There is a strong possibility.` Lee said of KoGas securing capacity from the two Cheniere trains that have yet to be commercialized. `But at this moment we are just talking about the possibility. What is sure is we are taking gas now from train 3 at Sabine Pass.`
Platts Analytics data shows that South Korean LNG demand was 7.18 Bcf d in January. but dropped as low as 3.78 Bcf d in May.
Cheniere has three trains operating at Sabine Pass. a fourth being commissioned and a fifth train that it is building at the facility in Cameron Parish. Louisiana. It also is currently building two trains at Corpus Christi.
`The team`s been very busy` trying to secure new deals. Cheniere CEO Jack Fusco said. `It`s a main focus of mine and ours and our executive team here at Cheniere to grow the business. We think we have a very competitive product and we`re working hard to get everything commercialized.`
KoGas currently has offtake contracts with a number of LNG producers that are mostly located in the Asia Pacific and the Middle East.
Fusco declined to say how many potential offtakers Cheniere was talking to in addition to KoGas to commercialize the two remaining trains.
