Energy Transfer LP (ET) announced that its subsidiary, Energy Transfer LNG Export, LLC, has signed a 20-year LNG Sale and Purchase Agreement with Japan's Kyushu Electric Power Company.
This agreement supports Energy Transfer's Lake Charles LNG project and follows recent deals with MidOcean Energy, a German energy company, and another international energy firm for a combined 7.0 million tonnes per annum of LNG.
Under the agreement, Energy Transfer LNG will supply up to 1.0 mtpa of LNG to Kyushu on a free-on-board basis. The pricing structure includes a fixed liquefaction fee and a gas supply cost indexed to the Henry Hub benchmark. The deal is contingent upon Energy Transfer LNG making a positive final investment decision for the Lake Charles LNG project and meeting other conditions.
Energy Transfer LNG President Tom Mason expressed appreciation for Kyushu's long-standing support of the project, noting that this agreement marks Kyushu's first long-term U.S. LNG procurement deal. The contract is expected to enhance Kyushu's supply stability and diversify its sourcing portfolio.
If a positive FID is reached, the Lake Charles LNG export terminal will be developed on an existing regasification site and will utilize Energy Transfer's four LNG storage tanks, deep water berths, and direct pipeline access. The facility will connect to the Trunkline pipeline system, linking major gas basins like the Haynesville, Permian, and Marcellus. Energy Transfer remains one of North America's most diversified midstream energy companies.
ET is currently trading at $17.65 or 0.65% lower on the NYSE.
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