Total Gas & Power Ltd. has signed a deal to sell to South Korea's Korea Gas Corp. (Kogas) 0.7 million metric tons per year of liquefied natural gas (LNG) for 20 years from the planned Sabine Pass LNG export terminal in Louisiana.
The LNG will be lifted following startup of the terminal's third train, which is scheduled for commissioning in 2017, Total said.
"With this agreement, we are consolidating our leadership in a growing LNG market and taking a position in an LNG export market that is emerging in the United States," said Total Gas & Power President Philippe Sauquet. "The execution of this new long-term agreement between Total and Kogas also strengthens the ties between our two companies. It follows on from the recent acquisition by Kogas of an interest in the GLNG [Gladstone LNG] project in Australia and the execution of a sale and purchase agreement between Total Gas & Power and Kogas for 2 million metric tons per year of LNG."
The GLNG project is a US$18.5 billion venture to convert coal seam natural gas to LNG for export. The project involves the development of the Santos GLNG gas fields in the Bowen and Surat Basins, construction of a 420 kilometer gas pipeline from Roma to Gladstone and a two-train LNG processing facility on Curtis Island at Gladstone. The project is a venture of Australia's Santos, Malaysia's Petronas, France's Total and Kogas.
Total has also negotiated a cooperation agreement with Sabine Pass Liquefaction that will help to further expand the liquefaction capabilities being developed adjacent to the Sabine Pass LNG import terminal (see Daily GPI, Sept. 13).
In addition to Australia, Total has interests in LNG projects in Indonesia, Nigeria, Norway, Oman, Qatar, the United Arab Emirates, Yemen, Angola and Russia. Total has long-term access to LNG regasification capacity in key LNG importing countries, and it is developing trading, marketing and logistics businesses to offer its natural gas and LNG production directly to customers. "This LNG portfolio allows Total to supply its main customers worldwide with gas, while retaining a certain degree of flexibility to seize market opportunities," the company said.
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