Lake Charles LNG developer signs Chinese gas deals
Energy Transfer announced on March 29 it had signed long-term supply deals with two subsidiaries of Chinese gas group ENN for LNG from its Lake Charles project in Louisiana.
Under the sales and purchase agreements, Energy Transfer will deliver 1.8mn metric tons of LNG annually to ENN NG and 0.9mn mt annually to ENN Energy on a free-on-board basis for 20 years. First deliveries are due as early as 2026, Energy Transfer said, which is when the 16.54mn mt/yr Lakes Charles is expected online, pending a final investment decision.
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Lake Charles will use part of the infrastructure of an existing brownfield regasification facility, built when the US was a net importer of gas, including four LNG storage tanks and two deep water berths. It will receive gas via Energy Transfer's existing trunkline system from various basins including Haynesville, Permian and Marcellus Shale.
ENN operates China's first privately-owned LNG terminal in Zhoushan, and has an annual LNG distribution capacity of more than 10bn m3/year. Its overall gas sales amounted to 37.2bn m3 in 2021, which was the equivalent of 10% of total Chinese gas consumption.