Energy Transfer LP has announced that its subsidiary, Energy Transfer LNG Export, LLC, has entered into a 20-year Liquefied Natural Gas Sale and Purchase Agreement with Chevron U.S.A. Inc.. The agreement involves the supply of 2.0 million tons of LNG per annum from Energy Transfer’s Lake Charles LNG project.
Under the terms of the SPA, LNG will be delivered on a free-on-board basis, with pricing consisting of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. The agreement is contingent on Energy Transfer LNG’s final investment decision and the satisfaction of other conditions precedent.
Freeman Shaheen, president of Chevron Global Gas, added:
“Chevron believes LNG plays an important role in meeting the world’s need for energy while helping advance lower carbon ambitions. This new long-term agreement demonstrates our focus on increasing access to affordable, reliable, ever-cleaner energy supplies to meet growing global demand.”
The Lake Charles LNG export facility will be developed on an existing brownfield regasification facility site, leveraging existing infrastructure such as four LNG storage tanks, two deepwater berths, and associated facilities. The site’s strategic location allows direct access to Energy Transfer’s Trunkline pipeline system, which connects to multiple intrastate and interstate pipelines. This provides seamless access to key natural gas production basins, including the Haynesville, Permian, and Marcellus Shale regions.
Energy Transfer, one of North America’s largest and most diversified midstream energy companies, continues to strengthen its position in major U.S. production basins with this significant development in its Lake Charles LNG project.
For more information visit www.energytransfer.com
