The Korea Gas Corporation (KOGAS) announced that the US Sabine Pass LNG project with which KOGAS contracted long-term LNG purchases on January 30, has recently received authorization for liquefaction and export of natural gas by the Federal Energy Regulatory Commission (FERC) of the US, on April 9.
The project is to convert receiving terminal to have liquefaction and send-out capabilities, with capacities of 16 mtpa of LNG volumes.
The project's first phase of constructing two modular LNG trains, with a nominal capacity of approximately 4.5 mtpa, is scheduled to start during the first half this year, while the second phase of building additional two LNG trains will commence in 2013.
KOGAS has agreed to purchase approximately 3.5 mtpa of LNG from 2017 to 2036.
As KOGAS is enable to change or nominate the unloading ports, unlike ordinary LNG purchase projects, it would also make profits by overseas trading in terms of supply and demand of domestic gas.
KOGAS will purchase LNG on a FOB basis and place orders for newbuilding LNG carriers, which is to foster Korean shipbuilding and shipping companies.