Energy Transfer LP announced its subsidiary, Energy Transfer LNG Export, LLC (Energy Transfer LNG), has signed an incremental Sale and Purchase Agreement (SPA) with Chevron for additional LNG supply from its Lake Charles LNG export facility.
The 20-year agreement for 1.0 million tonnes per annum (mtpa) increases Chevron’s total contracted volume from Energy Transfer LNG to 3.0 mtpa, following the initial 2.0 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."
“This expanded LNG agreement reflects the growing strength of Chevron’s global gas business,” said Freeman Shaheen, President, Chevron Global Gas. “With a diverse, reliable, and flexible supply network, we’re committed to delivering affordable, reliable, and ever-cleaner energy to meet global demand and the evolving needs of our customers.”
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 5.0 mtpa and an SPA with Kyushu Electric Power Company for 1.0 mtpa.
The Lake Charles LNG export facility would be constructed on the existing brownfield regasification facility site to capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructure. Lake Charles LNG would 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. Energy Transfer is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint in all of the major U.S. production basins.
