Energy Transfer seals long-term Lake Charles LNG deal with Shell

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 LNG giant Shell.

Under the SPA, Energy Transfer LNG, a unit of Energy Transfer, would supply 2.1 million tonnes of LNG per year from Lake Charles to Shell NA LNG on a free-on-board basis for a period of 20 years, according to a statement.

The Henry Hub-indexed deal would include a fixed liquefaction charge, Energy Transfer said.

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 seals long-term Lake Charles LNG deal with Shell
Image: Energy Transfer

Six deals in five months

Energy Transfer said it has announced six SPAs in the last five months, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to nearly 8 mtpa.

The customers include China Gas, Gunvor, ENN, and SK Gas.

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.

Back in 2020, Shell announced a decision to pull out of the Lake Charles LNG project.

Shell entered the project in its 2016 combination with BG Group.

“We have had a long-standing relationship with Shell and its predecessor BG Group, as a customer of our regasification facility at Lake Charles,” Tom Mason, president of Energy Transfer LNG said in the statement.

“It is great to have Shell re-engaged in the project as a LNG offtake customer,” he said.

Steve Hill, executive VP energy marketing, Shell said this agreement “will enable us to further meet the increasing demand for LNG and positions Shell as a leading buyer of LNG from the US – which in 2021 became the world’s biggest LNG supplier.”

Most Popular

GTT develops new LNG fuel tank

French LNG containment giant GTT has developed a new cubic-shaped LNG fuel tank for commercial vessels, with a particular focus on LNG-fueled container vessels.

Monkey Island LNG pens offtake MoU

Houston-based Monkey Island LNG, the developer of a 26 mtpa liquefaction and export facility in Cameron Parish, Louisiana, said it had signed a memorandum of understanding with an unidentified international oil company for the offtake of LNG.

McDermott bags Monkey Island LNG gig

Houston-based McDermott has secured a contract from Monkey Island LNG for its planned natural gas liquefaction facility in Cameron Parish, Louisiana.

More News Like This

Shell, Hapag-Lloyd seal bio-LNG bunkering deal

A unit of UK-based LNG giant Shell has signed a deal with Germany's Hapag-Lloyd to supply the latter's dual-fuel container vessels with bio-LNG.

Peru LNG sent four cargoes in August

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped four liquefied natural gas cargoes in August, one less than in the previous month.

YPF CEO expects FIDs on FLNG projects with Eni, Shell in 2026

YPF CEO Horacio Marin confirmed on Wednesday that the state-owned oil and gas company and its partners Eni and Shell expect to take final investment decisions on two stages of the Argentina LNG project in 2026.

Shell pens US LNG supply deal with Edison

UK-based LNG giant Shell has signed a long-term deal to supply US LNG to Italian energy firm Edison, a unit of EDF.