Energy Transfer has expanded its liquefied natural gas (LNG) supply agreement with Chevron, increasing the total contracted volume to three million tonnes per annum (mtpa).
Subsidiary Energy Transfer LNG Export has signed a 20-year incremental sale and purchase agreement (SPA) for an additional 1mtpa from its Lake Charles LNG export facility.
This deal follows the initial 2mtpa agreement signed in December 2024.
The LNG will be supplied to Chevron on a free-on-board basis, with the purchase price comprising a fixed liquefaction charge and a component indexed to the Henry Hub benchmark.
The obligations of Energy Transfer LNG under the SPA are contingent upon the company taking a positive final investment decision and meeting other conditions precedent.
Energy Transfer LNG president Tom Mason said: “This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply.
“With Energy Transfer’s strategic infrastructure and connectivity to key production basins, Lake Charles LNG is poised to be a premier export facility, providing long-term value to our partners and the industry."
The recent SPA is part of Energy Transfer’s strategy to secure long-term commitments for the Lake Charles LNG project.
The company has also entered into a heads of agreement with MidOcean Energy for approximately 5mtpa and an SPA with Kyushu Electric Power Company for 1mtpa.
Lake Charles LNG is due to be constructed on the site of an existing brownfield regasification facility, utilising four existing LNG storage tanks, two deep-water berths, and other infrastructure.
The facility will benefit from a direct connection to Energy Transfer's Trunkline pipeline system, which provides access to multiple natural gas-producing basins including the Haynesville, the Permian and the Marcellus Shale.
Chevron Global Gas president Freeman Shaheen said: “This expanded LNG agreement reflects the growing strength of Chevron’s global gas business.
“With a diverse, reliable and flexible supply network, we are committed to delivering affordable, reliable and ever-cleaner energy to meet global demand and the evolving needs of our customers.”
