Energy Transfer has signed an 18-year agreement to supply liquefied natural gas (LNG) from its planned Lake Charles LNG export facility in the US to South Korea’s SK Gas Trading.
Under the long-term sale and purchase agreement (SPA), Energy Transfer LNG Export, a subsidiary of Energy Transfer, will supply LNG on a free-on-board (FOB) basis to SK Gas.
The purchase price of LNG from the project is indexed to the Henry Hub benchmark, plus a fixed liquefaction charge.
Energy Transfer plans to start LNG deliveries as early as 2026, upon satisfaction of the conditions precedent, including the final investment decision (FID) for the project.
Energy Transfer LNG president Tom Mason said: “We are excited to announce SK Gas as our first Korean offtake customer.
“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 US exports of natural gas. These factors increase our confidence for taking FID by the end of this year.”
Energy Transfer said the latest SPA marks its fourth deal in the last four weeks. This brings the firm’s total contracted LNG amount to 5.1 million tonnes per annum (mtpa) from the Lake Charles facility.
In a separate announcement related to its Lake Charles LNG project, Energy Transfer has signed a 20-year LNG SPA with Gunvor.
Energy Transfer LNG will supply two mtpa of LNG on FOB to Gunvor.
The Lake Charles LNG export facility is planned to be constructed on the existing brownfield regasification facility.
It will benefit from four existing LNG storage tanks, two deepwater berths and other LNG infrastructure.