Energy Transfer LP has agreed to supply China Gas Holdings Ltd. subsidiary China Gas Hongda Energy Trading Co. Ltd. with 700,000 tonnes/year (tpy) of LNG from its planned 16.45-million tpy Lake Charles LNG plant in Calcasieu Parish, La., starting as soon as 2026 and continuing for 25 years. The LNG will be sold on a free-on-board, Henry Hub-indexed basis.
The sales-and-purchase agreement between the two companies will become effective once Energy Transfer takes final investment decision (FID) on its plant, which it expects to do in 2022.
The agreement is China Gas’s first long-term LNG supply agreement.
Energy Transfer has now contracted 6 million tpy of Lake Charles LNG’s output. The company earlier this year requested a 3-year extension, to Dec. 16, 2028, to complete construction of the plant (OGJ Online, Feb. 4, 2022).