Energy Transfer signs LNG deal with Gunvor

Energy Transfer LP signed a 20-year deal to supply Gunvor Singapore Pte Ltd., a subsidiary of Gunvor Group Ltd., Geneva, with liquified natural gas (LNG) from Energy Transfer LNG Export LLC’s Lake Charles LNG liquefaction plant in Louisiana.

Energy Transfer LNG will supply 2 million tonnes/year (tpy) of LNG to Gunvor on a free-on-board (FOB) basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge.

The agreement will become effective upon satisfaction of conditions precedent, including Energy Transfer LNG taking final investment decision (FID), expected by yearend 2022. First deliveries are expected to begin as early as 2026.

The Lake Charles LNG infrastructure will be constructed on the existing brownfield regasification terminal and will capitalize on four existing LNG storage tanks, two deep water berths, and other LNG infrastructure.