Energy Transfer to Supply LNG to SK Gas in 18-Year Deal
Energy Transfer LP has executed a long-term sale and purchase agreement (SPA) with SK Gas Trading LLC for the supply of 0.4 million tonnes per annum (MTPA) of LNG from Energy Transfer’s Lake Charles LNG export facility.
The SPA is for a term of 18 years, and first deliveries are expected to commence as early as 2026. The SPA will become fully effective upon the satisfaction of the conditions precedent, including Energy Transfer LNG taking final investment decision (FID).
Energy Transfer’s Lake Charles LNG export facility will be constructed on the existing brownfield regasification facility and will capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructure.
“We are excited to announce SK Gas as our first Korean offtake customer,” Tom Mason, president of Energy Transfer LNG, said. “We look forward to a long-term relationship with SK Gas as it grows its domestic and international LNG business. We are also pleased with the level of interest in our Lake Charles LNG export project from international customers who need LNG supply and from domestic natural gas producers who will benefit from expanding U.S. exports of natural gas. These factors increase our confidence for taking FID by the end of this year.”
On Monday, the pipeline operator signed a long-term deal to supply LNG to the Singapore unit of trading firm Gunvor. This deal with SK marks Energy Transfer’s fourth SPA announced in the last four weeks, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to 5.1 MTPA.
Lake Charles LNG will benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus Shale.
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