Energy Transfer LNG Export has entered into a 20-year LNG Sale and Purchase Agreement (SPA) with Shell NA LNG related to its Lake Charles LNG project.
Energy Transfer LNG will supply Shell 2.1 million tons of LNG per annum (mtpa). It will supply the LNG on a free-on-board (FOB) basis and the purchase price will be indexed to the Henry Hub benchmark, plus a fixed liquefaction charge. The first deliveries are expected to commence as early as 2026.
“We believe that Lake Charles is the most competitive LNG project on the Gulf Coast,” said Tom Mason, President of Energy Transfer LNG.
Energy Transfer LNG has announced six SPAs in the last five months, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to nearly 8 mtpa.
Energy Transfer’s Lake Charles LNG export facility is a fully permitted project on the Gulf Coast having received authorizations from the Federal Energy Regulatory Commission as well as export authorizations from the Department of Energy.
The LNG export facility will be constructed on the existing brownfield regasification facility site and will capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructure. Lake Charles LNG will also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines.