Energy Transfer subsidiary Energy Transfer LNG Export LLC (Energy Transfer LNG) has signed an incremental sale and purchase agreement (SPA) with Chevron USA Inc. (Chevron) for additional liquefied natural gas (LNG) supply from its Lake Charles LNG export facility. The 20-year agreement for 1 MTPA increases Chevron’s total contracted volume from Energy Transfer LNG to 3 MTPA, following the initial 2 MTPA agreement signed in December 2024.
As with the first SPA, the LNG will be supplied 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. The obligations of Energy Transfer LNG 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.
“This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply,” said Tom Mason, president of Energy Transfer LNG. “With Energy Transfer’s strategic infrastructure and connectivity to key production basins, Lake Charles LNG is poised to be a premier export facility, providing long-term value to our partners and the industry.”
The latest SPA with Chevron builds on Energy Transfer’s 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 Co. for 1 MTPA.
Energy Transfer LP is developing a large-scale LNG facility in Lake Charles, Louisiana, located on the Calcasieu ship channel. The project will convert Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG liquefaction and export facility, providing a cost advantage over other proposed LNG projects on the Gulf Coast.
The project includes three 5.5 MTPA liquefaction trains which will utilize existing infrastructure. It will also benefit from abundant natural gas supply and proximity to major pipeline infrastructure, including Energy Transfer’s vast pipeline network.
The existing Lake Charles LNG import and regasification terminal has approximately 430,000 cubic meters of above ground LNG storage capacity, two deep water docks capable of handling ships with up to 217,000 cubic meters of capacity, and a deep water turning basin.
Lake Charles LNG will also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian, and the Marcellus Shale.
