The deal calls for Cheniere to sell and deliver ~3.5M metric tons/year of LNG to Kogas, which represents more than 10% of South Korea's total annual demand.
The agreement, which was originally signed in 2012, officially commenced on June 1 this year, with the first cargo loading the following day.
LNG may play an enlarged role in meeting South Korea’s energy needs as the country's new president has promised to transition away from coal and nuclear power, favoring natural gas and renewables; with the Korea Gas supply deal in place, Cheniere is in a position to capitalize on the policy shift.
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