Energy Transfer LP subsidiary Energy Transfer LNG Export LLC has agreed to supply an additional 1.0 million tonnes/year (tpy) of LNG to Chevron USA Inc. from the Lake Charles LNG plant (OGJ Online, Sept. 20, 2024).
The 20-year agreement increases Chevron’s total contracted volume from Energy Transfer LNG to 3.0 million tpy, following the initial 2.0 million tpy agreement signed in December 2024, Energy Transfer said in a release June 25.
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 agreement remain subject to Energy Transfer LNG taking a positive final investment decision (FID) as well as the satisfaction of other conditions precedent.
The proposed 16.45 million tpy Lake Charles LNG export plant is expected to be constructed on the existing brownfield regasification terminal site in Calcasieu Parish, La., to capitalize on four existing LNG storage tanks, two deep water berths, and other LNG infrastructure, Energy Transfer said.
Lake Charles LNG would also benefit from direct connection to Energy Transfer's existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. The pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian, and the Marcellus shale.
In addition to the agreement with Chevron, Energy Transfer signed a heads of agreement with MidOcean Energy for supply of about 5.0 million tpy from the Lake Charles LNG project as well as a supply agreement with Kyushu Electric Power Co. for 1.0 million tpy (OGJ Online, Apr. 10, 2025; May 29, 2025).