Energy Transfer LP has announced its subsidiary, Energy Transfer LNG Export, LLC, has entered into a 20-year LNG sale and purchase agreement (SPA) with Chevron U.S.A. Inc. related to its Lake Charles LNG project. Under the SPA, Energy Transfer LNG will supply 2 million tpy of LNG to Chevron.
The LNG will be supplied 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 are subject to Energy Transfer LNG taking a final investment decision (FID), as well as the satisfaction of other conditions precedent.