Energy Transfer inks long-term Lake Charles LNG deal with Gunvor

Energy Transfer, the developer of the proposed Lake Charles LNG export facility in Louisiana, has signed a long-term supply deal with a unit of energy and LNG trader Gunvor.

Under the SPA, Energy Transfer LNG, a unit of Energy Transfer, would supply 2 million tonnes of LNG per year from Lake Charles to Gunvor Singapore on a free-on-board basis for a period of 20 years.

The Henry Hub-indexed deal would include a fixed liquefaction charge, according to a statement by Energy Transfer on Monday.

Energy Transfer expects first deliveries to start as early as 2026, but the firm has still to take a final investment decision on the Lake Charles LNG export project.

The firm said the deal would become fully effective upon the satisfaction of the conditions precedent, including taking FID.

Energy Transfer’s Lake Charles LNG project seeks to convert the company’s existing regasification terminal to an LNG export facility.

It has a proposed liquefaction capacity of 16.45 mtpa and includes three trains but also modifications to the Trunkline Gas pipeline.

Earlier this year, Energy Transfer asked US energy regulators for a three-year extension to construct the proposed LNG export plant.

It has also recently signed two long-term supply deals with Chinese independent gas distributor ENN.

“Gunvor’s commitment to Lake Charles further evidences the progress we are making towards taking FID by year end,” said Tom Mason, President of Energy Transfer LNG.

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