Energy Transfer LP to supply Chevron 2.0M Tonnes of LNG per year

Energy Transfer (ET) “announced its subsidiary, Energy Transfer LNG Export, LLC has entered into a 20-year LNG Sale and Purchase Agreement with Chevron (CVX) related to its Lake Charles LNG project. Under the SPA, Energy Transfer LNG will supply 2.0 million tonnes of LNG per annum (mtpa) to Chevron. The LNG will be supplied on a free-on-board basis and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. The obligations of Energy Transfer LNG under the SPA are subject to Energy Transfer LNG taking a final investment decision as well as the satisfaction of other conditions precedent. The Lake Charles LNG export facility would be constructed on the existing brownfield regasification facility site and will capitalize on four existing LNG storage tanks, two deep water berths and other LNG 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.”