Energy Transfer, through its subsidiary Energy Transfer LNG Export, has signed agreements to supply 2.7 million tonnes of liquefied natural gas (LNG) to China’s ENN Natural Gas, and ENN Energy Holdings, from the Lake Charles LNG project.

Under the 20-year sale and purchase agreements, ENN NG will receive 1.8 million tonnes of LNG per year while ENN Energy will receive 0.9 million tonnes of LNG per annum, on free-on-board (FOB) basis.

ET LNG plans to start deliveries as early as 2026.

ET LNG president Tom Mason said: “The execution of these two SPAs represents a significant event in moving the Lake Charles LNG project towards FID.

“We are experiencing strong demand for long-term offtake contracts for Lake Charles LNG, and we are optimistic that we will be in a position to take a positive FID by year end.

“The Lake Charles LNG project is expected to be financed primarily through infrastructure funds and strategic partners, with Lake Charles LNG retaining an equity stake and operatorship of the liquefaction facility.”

The firm said that the purchase price is indexed to the Henry Hub benchmark, plus a fixed liquefaction charge.

ENN NG president and ENN Energy Holdings board of directors’ vice-chairman Zheng Hongtao said: “The signing of these long-term SPAs will further enrich ENN’s LNG resources, expand resource supply channels, and improve ENN’s natural gas supply capacity to meet the rapidly growing natural gas demand in the domestic market.

“It also provides our customers with better resources and services, ensures natural gas supply nationwide, and contributes to the low-carbon transformation of energy structure.”

Planned to be constructed on the existing brownfield regasification facility, the Lake Charles LNG will benefit from four existing LNG storage tanks, two deep water berths, and other LNG infrastructures.

Earlier this month, Energy Transfer agreed to sell its 51% stake in Energy Transfer Canada ULC to a joint venture of Pembina Pipeline, and global infrastructure funds managed by KKR, for approximately $1.3bn, including debt and preferred equity.

Energy Transfer Canada’s assets include six natural gas processing plants, and a network of natural gas gathering and transportation infrastructure in the Western Canadian Sedimentary basin.