Energy Transfer agrees to supply Kyushu Electric Power with LNG from Lake Charles plant
Energy Transfer LNG Export LLC, a subsidiary of Energy Transfer LP, has agreed to supply Kyushu Electric Power Co. Inc. with LNG from its Lake Charles LNG project.
Under the agreement with Kyushu, Energy Transfer LNG will supply up to 1.0 million tonnes/year (tpy) of LNG for 20 years. 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 positive final investment decision (FID) on the Lake Charles LNG project and satisfying other conditions precedent.
For Kyushu, the agreement is the first long-term LNG procurement contract from the US aimed at diversifying its procurement sources and enhancing the stability of its LNG supply.
If Energy Transfer LNG reaches a positive FID, the Lake Charles LNG export plant would be constructed on the existing brownfield regasification terminal site, utilizing 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 natural gas pipeline system, which in turn provides connections to multiple intrastate and interstate pipelines.
The agreement with Kyushu follows Energy Transfer’s heads of agreement (HOA) with MidOcean Energy for about 5.0 million tpy of LNG production from Lake Charles LNG (OGJ Online, Apr. 10, 2025). The company also recently signed a an agreement with an international energy company for 1.0 million tpy of LNG and an HOA with a German energy company for 1.0 million tpy of LNG.
