Energy Transfer LP announced that its subsidiary, Energy Transfer LNG Export, LLC has entered into a major 20-year LNG Sale and Purchase Agreement (SPA) with Chevron USA Inc. Under the agreement, Energy Transfer LNG will supply approximately 2.0 million tons of LNG per year, free-on-board, from the Lake Charles LNG facility to Chevron.
However, the deal is pending a final investment decision of Energy Transfer LNG and qualifying requirements that are necessary for such a venture.
Lake Charles LNG Project Headed Toward Commercialization
Tom Mason, President of Energy Transfer LNG, said, “This new long-term agreement demonstrates our focus on increasing access to affordable, reliable, ever-cleaner energy supplies to meet growing global demand.”
Energy Transfer is developing the Lake Charles LNG project at an existing brownfield regasification site. The facility will fully utilize its present infrastructure, including four LNG storage tanks and two deep-water berths. It will connect directly to Trunkline, providing access to key natural gas regions like Haynesville, Permian, and Marcellus.
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Freeman Shaheen, Chevron Global Gas’s President, spoke to how LNG is filling global energy demand while pushing the goals for environmental benefits.. “Chevron believes LNG plays an important role in meeting the world’s need for energy while helping advance lower carbon ambitions. This new long-term agreement demonstrates our focus on increasing access to affordable, reliable, ever-cleaner energy supplies to meet growing global demand.”
Strategic Growth for Energy Transfer
Lake Charles LNG is one of Energy Transfer’s continued strategies for expansion in the energy landscape. Energy Transfer is a large midstream energy company that takes advantage of an expansive network of pipelines connecting critical production basins in the US. The company aims to meet growing LNG demand while supporting the global energy transition with cleaner, sustainable fuel options.