Energy Transfer, China Gas sign LNG pact
US midstream company Energy Transfer has signed an agreement to supply 0.7mn metric tons/year of LNG to Chinese gas distributor China Gas Hongda Energy Trading Co. from its Lake Charles LNG export facility in Louisiana, it said on June 5.
Under the 25-year sales and purchase agreement, Energy Transfer will supply LNG to China Gas Hongda, a subsidiary of Hong Kong-listed China Gas Holdings, on a free-on-board basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge. The first deliveries are expected in early 2026.
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The SPA will become fully effective upon the satisfaction of the conditions precedent, including Energy Transfer LNG taking the final investment decision (FID), the company said.
“China Gas is a premier natural gas distribution company in China, and we are pleased to enter into this 25-year LNG offtake agreement with them,” said Tom Mason, president of Energy Transfer LNG. “This SPA brings our total amount of LNG contracted from our Lake Charles LNG export facility to nearly 6mn mt/yr and is an important step towards our goal of reaching FID later this year.”
Energy Transfer in May this year signed an LNG SPA with South Korea’s SK Gas for the supply of 0.4mn metric tons/year of LNG.
Lake Charles LNG export facility will be constructed on the existing brownfield regasification facility and will capitalise on four existing LNG storage tanks, two deep water berths and other LNG infrastructure.