Energy Transfer has signed a 25-year sale and purchase agreement (SPA) with China Gas Hongda Energy Trading for the supply of 700,000 tpa of LNG from the Lake Charles LNG project.
The LNG will be supplied on a free-on-board (FOB) basis, with the purchase price indexed to the Henry Hub benchmark plus a fixed liquefaction charge. Energy Transfer expects to make the first deliveries in 2026.
With this latest deal, Energy Transfer has now contracted almost 6 million tpa of LNG from Lake Charles. President Tom Mason says that it is ‘an important step’ towards the company’s final; investment decision, expected later in 2022.
‘This LNG SPA signed with Energy Transfer LNG, which is the first long-term contract of China Gas, strengthens our existing portfolio for the import of LNG, and will further enable China Gas to reliably and securely meet our natural gas customers’ needs. It is also an important step along the path to realising China’s carbon peaking and carbon neutrality goals,’ says Yalong Qi, general manager of China Gas Hongda Energy Trading.
(Source; The Tank Storage Magazine)