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Kogas LNG tanker heads towards Sabine Pass

15 May 2017 17:16 (+01:00 GMT)
Kogas LNG tanker heads towards Sabine Pass

London, 15 May (Argus) — South Korea's state-controlled Kogas' 174,000m³ Hyundai Princepia is heading towards the US' 25mn t/yr Sabine Pass facility and will probably lift the first commercial LNG cargo from train three at the facility.

The newly-commissioned Hyundai Princepia departed South Korea on 11 May, and on 12 May was scheduled to arrive at Sabine Pass on 14 June. The vessel is declaring for the Panama Canal on 6 June.

Sabine Pass has been expected to start long-term sales to Kogas in June.

Kogas has a 20-year contract to take 3.5mn t/yr from the 5mn t/yr third liquefaction train on a fob basis. It pays 115pc of the US Henry Hub gas price and a take-or-pay liquefaction fee of $3/mn Btu.

Kogas may sell US LNG on the spot market.

US LNG producer Cheniere Energy took control of the third liquefaction train from contractor Bechtel on 31 March. The US Federal Energy Regulatory Commission authorised Cheniere to place the unit in long-term operations on 21 March.

Shell has a 20-year contract for up to 3.5mn t/yr of Sabine Pass supplies that started in November and Spanish firm Gas Natural's 20-year contract for up to 3.5mn t/yr is scheduled to start in the second half of this year or early next year. Until then, Gas Natural can buy up to 2mn t/yr on a so-called pre-commercial basis.