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In December 2024, Energy Transfer LNG entered into a 20-year LNG sale and purchase agreement (SPA) to supply 2 million tonnes of LNG per annum (mtpa) to Chevron U.S.A.
Energy Transfer said on Wednesday that its unit has signed an incremental SPA with Chevron for additional LNG supply from its Lake Charles LNG export facility.
Moreover, the 20-year agreement for 1 mtpa increases Chevron’s total contracted volume from Energy Transfer LNG to 3 mtpa.
As with the first SPA, Energy Transfer will supply LNG to Chevron 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 said the obligations of its unit under the SPA remain subject to Energy Transfer LNG taking a positive final investment decision (FID) as well as the satisfaction of other conditions precedent.
LNG deals
The company noted that the latest SPA with Chevron builds on its momentum in securing long-term LNG commitments for Lake Charles LNG.
Recent agreements also include a heads of agreement (HOA) with MidOcean Energy for approximately 5 mtpa and an SPA with Kyushu Electric Power for 1 mtpa.
Under the SPA with Kyushu Electric, the unit of Energy Transfer will supply the utility with up to 1 million tonnes of LNG per year over a 20-year period.
In April, Lake Charles LNG and MidOcean Energy, the LNG unit of US-based energy investor EIG, signed the heads of agreement, which provides a non-binding framework for the joint development of the LNG project.
Pursuant to the HoA, MidOcean would commit to fund 30 percent of the construction cost and be entitled to 30 percent of the LNG production.
In February this year, Energy Transfer executives said they hope to make FID to build the Lake Charles LNG export facility in the fourth quarter of 2025.
Energy Transfer’s Lake Charles LNG project seeks to convert its existing regasification terminal to an LNG export facility.
It has a proposed liquefaction capacity of 16.45 mtpa and includes three trains and also modifications to the Trunkline Gas pipeline.