(Energy Analytics Institute, 19.Dec.2024) — Energy Transfer LP subsidiary Energy Transfer LNG Export, LLC entered into a 20-year LNG Sale and Purchase Agreement (SPA) with Chevron U.S.A. Inc. related to Energy Transfers’ 16.5 million tonnes per annum (mtpa) Lake Charles LNG export project.
Per the SPA, Energy Transfer LNG will supply 2 mtpa of LNG to Chevron, Energy Transfer said 19 Dec. 2024 in an official statement.
The LNG will be supplied on a free-on-board (FOB) basis and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. Energy Transfer LNG’s obligations under the SPA are subject to Energy Transfer LNG taking a final investment decision (FID) as well as the satisfaction of other conditions precedent.
Energy Transfer LNG president Tom Mason said the company continues to make significant progress towards full commercialization of the LNG export project.
The Lake Charles LNG export facility would be constructed on the existing brownfield regasification facility site and will capitalize on 4 existing LNG storage tanks, 2 deep water berths and other LNG infrastructure.
The Lake Charles LNG project is fully permitted by the Federal Energy Regulatory Commission (FERC) for three 5.5 mtpa liquefaction trains, which will utilize existing infrastructure.
Lake Charles LNG would also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus Shale, the company said in the statement.
“This new long-term agreement demonstrates our focus on increasing access to affordable, reliable, ever-cleaner energy supplies to meet growing global demand,” Chevron Global Gas president Freeman Shaheen said in the statement.
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