Cheniere and KOGAS sign 20-year LNG sale and purchase agreement

Cheniere Energy Partners, L.P. (NYSE Amex: CQP) announced on Jan. 30 that its subsidiary, Sabine Pass Liquefaction, LLC, has entered into a liquefied natural gas sale and purchase agreement with Korea Gas Corp. (KOGAS) under which KOGAS has agreed to purchase approximately 3.5 million tons per annum of LNG when Cheniere’s train three begins operations.

Under the SPA, KOGAS will purchase LNG on an FOB basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto KOGAS's vessels.

The SPA has a term of 20 years beginning at the first commercial delivery for train three, and an extension option of up to 10 years. Deliveries from train three are expected to occur as early as 2017.

"KOGAS is our fourth foundation customer and we have now sold 16 mtpa of the 18 mtpa being developed at the Sabine Pass LNG terminal," said Charif Souki, chairman and CEO. "We look forward to finalizing all necessary steps in order to begin construction of the first phase of our project early this year and more importantly, to becoming the first LNG exporter in the Continental U.S."

Korean pension fund offers $847 million for 23.44 percent of Colonial

SEOUL, Korea - National Pension Service, South Korea’s biggest investor, said it’s in talks to buy into a U.S. oil pipeline to diversify its portfolio.
The Korea Economic Daily reported that the pension fund was picked as a preferred bidder to buy Chevron Corp.’s 23.44 percent interest in Colonial Pipeline Co. for about 1 trillion won ($847 million).
National Pension denied the company was picked as the preferred bidder. Colonial’s other stockholders have rights of first refusal whenever a block of stock is on the market. Colonial stockholders would be polled one by one to ask if they wished to buy the block. If none of the other stockholders was interested, Chevron could sell the block to National Pension Service.
South Korea has said pension and sovereign wealth funds may invest in overseas energy assets as Asia’s fourth-largest crude importer competes for natural resources with China and India.
Chevron Midstream Investments holds Chevron's 23.44 percent stake in Colonial, which transports fuels from refineries in Texas, Louisiana, Mississippi and Alabama to marketing terminals, according to Colonial’s website.
National Pension, which had 295 trillion won in assets as of June, is investing in overseas stocks and real-estate from Australia to the U.K. to diversify from domestic fixed-income holdings. The fund plans to boost its overseas investments to at least 20 percent of assets by 2015, from about 11 percent now.

Apache Corp. to supply Kitimat terminal with liquefied natural gas

CALGARY, Alta. - Kitimat LNG Inc. announced on Aug. 10 that it has signed a memorandum of understanding (MOU) with Apache Corp. to supply natural gas to Kitimat LNG's proposed liquefied natural gas (LNG) export terminal on the coast of British Columbia.
The MOU sets a framework for Kitimat and Apache to negotiate a definitive agreement to supply 200 million to 300 million cubic feet (MMcf) of natural gas feedstock per day to the terminal, which has a planned capacity of 700 MMcf per day. Apache also obtained an option to purchase an equity stake in the Kitimat LNG terminal.
"We are very pleased to welcome an industry leader such as Apache to our growing team of exceptional project partners," said Rosemary Boulton, president of Kitimat LNG. "The participation of companies such as Korea Gas Corp. (KOGAS), GAS NATURAL, EOG Resources Canada and Apache gives our project strong momentum and reinforces the fundamental strength of our business strategy."