Cheniere strikes LNG supply deal with Korea Southern Power

(Reuters) - Cheniere Energy Inc said on Tuesday it has entered a long-term deal to supply liquefied natural gas (LNG) to Korea Southern Power Co Ltd.

The top U.S. exporter of LNG shipped a total of 638 cargoes last year, with over 70% delivered to Europe, and said in March it expects to ship more LNG to Asia this year.

Korea Southern Power will buy about 0.4 million tons of LNG per annum from Cheniere from 2027 through 2046, with a smaller annual quantity to be delivered starting in 2024.

The LNG to be delivered prior to 2027 will be market-based pricing, after which it will be indexed to the Henry Hub price, plus a fee.

Cheniere said the long-term deal will support its Sabine Pass expansion project in Louisiana.

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