Energy Transfer LP has announced that its subsidiary, Energy Transfer LNG Export, LLC, has entered into a 20-year LNG Sale and Purchase Agreement (SPA) with Chevron U.S.A. Inc. for the supply of liquefied natural gas (LNG) from its Lake Charles LNG project. Under the agreement, Energy Transfer LNG will provide Chevron with 2.0 million tonnes of LNG per year (mtpa) on a free-on-board (FOB) basis. The purchase price will include a fixed liquefaction charge and a gas supply component tied to the Henry Hub benchmark.

The agreement is contingent on Energy Transfer LNG making a final investment decision (FID) and meeting other conditions set forth in the agreement. Tom Mason, President of Energy Transfer LNG, expressed excitement about the partnership, noting that Lake Charles LNG is a top contender for LNG supply on the Gulf Coast and that progress toward the project's full commercialization is ongoing.

Chevron’s Freeman Shaheen, President of Chevron Global Gas, emphasized the importance of LNG in meeting global energy demands while supporting lower carbon goals. The long-term agreement underscores Chevron’s commitment to providing affordable, reliable, and cleaner energy supplies to meet growing global demand.

The Lake Charles LNG export facility will be built on the site of an existing brownfield regasification facility, utilizing four existing LNG storage tanks, two deep-water berths, and other infrastructure. The project will also benefit from its connection to Energy Transfer’s Trunkline pipeline system, which links to various intrastate and interstate pipelines, providing access to key natural gas-producing regions such as the Haynesville, Permian, and Marcellus Shale basins.

Energy Transfer is one of North America's largest and most diversified midstream energy companies, with a strategic presence in all major U.S. production basins. The Lake Charles LNG project represents a significant step forward in its efforts to enhance LNG export capabilities and meet the growing demand for clean energy.

Energy Transfer LP owns and operates one of the largest and most diversified energy asset portfolios in the U.S., with over 130,000 miles of pipeline and related infrastructure. Its strategic network spans 44 states, covering all major U.S. production basins. As a publicly traded limited partnership, Energy Transfer’s core operations include natural gas midstream services, intrastate and interstate transportation, and storage, along with crude oil, natural gas liquids (NGL), and refined product transportation and terminalling. The company also handles NGL fractionation. Additionally, Energy Transfer owns Lake Charles LNG Company and holds significant stakes in Sunoco LP, including general partner interests, incentive distribution rights, and about 21% of the outstanding common units, as well as a 39% stake in USA Compression Partners, LP.