Energy Transfer signs sale and purchase agreement with SK Gas
Published by Abi Larkin,
Energy Transfer LP has announced the execution of a long-term sale and purchase agreement (SPA) with SK Gas Trading LLC (SK Gas) for the supply of 0.4 million tpy of LNG from Energy Transfer’s Lake Charles LNG export facility, Louisiana, US.
Under the SPA, Energy Transfer LNG Export LLC (Energy Transfer LNG) will supply LNG to SK Gas on a free-on-board (FOB) basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge. The SPA is for a term of 18 years, and first deliveries are expected to commence as early as 2026. The SPA will become fully effective upon the satisfaction of the conditions precedent, including Energy Transfer LNG taking final investment decision (FID).
This is Energy Transfer’s fourth SPA announced in the last four weeks, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to 5.1 million tpy.
“We are excited to announce SK Gas as our first Korean offtake customer,” said Tom Mason, President of Energy Transfer LNG. “We look forward to a long-term relationship with SK Gas as it grows its domestic and international LNG business. 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 the year.”
Energy Transfer is one of the largest and most diversified midstream energy companies in North America, with a strategic footprint in all of the major US production basins. Energy Transfer’s Lake Charles LNG export facility will be constructed on the existing brownfield regasification facility and will capitalize on four existing LNG storage tanks, two deep water berths, and other LNG infrastructure. Lake Charles LNG will also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian, and the Marcellus Shale.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04052022/energy-transfer-signs-sale-and-purchase-agreement-with-sk-gas/
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