Energy Transfer LP subsidiary Energy Transfer LNG Export LLC agreed to supply LNG to Chevron for a 20-year term.
Through the deal, signed with Chevron USA Inc., Energy Transfer will supply to Chevron 2 million tonnes/year (tpy) of LNG from its proposed and fully-permitted Lake Charles LNG plant on a free-on-board (FOB) basis. The purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark.
The agreement is subject to Energy Transfer LNG taking a final investment decision (FID) as well as the satisfaction of other conditions precedent, the company said in a release Dec. 19.
Tom Mason, president of Energy Transfer LNG, said the company continues to make ‘significant progress’ towards full commercialization of the Lake Charles LNG plant. The project, which would transform Energy Transfer's existing import and regasification terminal in Calcasieu Parish, La., into an LNG export plant, has seen years-long delays. In May 2022, the Federal Energy Regulatory Commission (FERC) granted Energy Transfer an extension until 2028 to build the plant (OGJ Online, Feb. 4, 2022).
Conversion would include delivery of three liquefaction trains and modifications to existing storage and dock infrastructure designed to enable the export of 16.45 million tpy of LNG.
In September, Energy Transfer LP subsidiary Lake Charles LNG Export Co. let a contract to KTJV, a KBR and Technip Energies joint venture, for work on the project, subject to the operator taking positive FID (OGJ Online, Sept. 20, 2024).