Energy Transfer signs LNG supply deal with Chevron

LAKE CHARLES, December 20, 2024 – Energy Transfer has signed a long-term deal to supply 2 million tonnes of LNG yearly to Chevron, the US midstream player said on Thursday.

Supplies over the 20-year term will come from the 16.5-million-tonne-per-year Lake Charles LNG export facility in Louisiana.

The LNG will be supplied on a free-on-board basis and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark, Energy Transfer said.

Contingent on an FID, the Lake Charles LNG facility will be constructed on an existing brownfield regasification facility site, home to four existing LNG storage tanks, two deep water berths and other LNG infrastructure. The planned project also has a direct connection to Energy Transfer’s existing trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines.

The conversion of the facility will include the delivery of three liquefaction trains and modifications to existing storage and dock facilities to enable the export of 16.5 million tonnes per year of LNG.

“We are pleased that one of the most prominent LNG industry participants has selected Lake Charles LNG as a supplier,” Energy Transfer LNG president Tom Mason said following the deal with Chevron.

“We believe that Lake Charles is the most compelling LNG project on the Gulf Coast and we continue to make significant progress towards full commercialisation of this project.”

In September, KBR announced that a joint venture between it and KBR and Technip Energies had been selected by the Lake Charles LNG Export Company to transform the existing facility into an LNG export complex.

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