Energy Transfer LP's subsidiary, Energy Transfer LNG Export, LLC, has entered into a 20-year LNG Sale and Purchase Agreement (SPA) with Kyushu Electric Power Company, Inc. The agreement commits Energy Transfer LNG to supply up to 1.0 million tonnes of LNG per annum (mtpa) from its proposed Lake Charles LNG project.
The LNG will be supplied on a free-on-board (FOB) basis, with the purchase price comprising a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. This marks Kyushu Electric Power Company's first long-term LNG procurement contract from the U.S., diversifying its supply sources.
The obligations under the SPA are contingent on Energy Transfer LNG taking a positive final investment decision (FID) for the Lake Charles LNG project and satisfying other conditions. This agreement, along with previous commitments, significantly advances the commercialization of the Lake Charles LNG export facility.
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