Energy Transfer LP's subsidiary, Energy Transfer LNG Export, LLC, has entered into a 20-year LNG Sale and Purchase Agreement (SPA) with Chevron U.S.A. Inc. The agreement commits Energy Transfer LNG to supply 2.0 million tonnes of LNG per annum (mtpa) from its proposed Lake Charles LNG project.
The LNG will be supplied on a free-on-board (FOB) basis, with the purchase price comprising a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. This long-term contract is a significant milestone for the Lake Charles LNG project, demonstrating strong market interest.
The obligations under the SPA are contingent on Energy Transfer LNG taking a final investment decision (FID) for the Lake Charles LNG project and satisfying other conditions. The facility is designed to leverage existing infrastructure, including four LNG storage tanks and two deepwater berths, and will connect to Energy Transfer's extensive pipeline system.
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