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Energy Transfer and Chevron sign SPA

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LNG Industry,


Energy Transfer LP has announced its subsidiary, Energy Transfer LNG Export, LLC, has signed an incremental sale and purchase agreement (SPA) with Chevron U.S.A. Inc. for additional LNG supply from its Lake Charles LNG export facility. The 20-year agreement for 1 million tpy increases Chevron’s total contracted volume from Energy Transfer LNG to 3 million tpy, following the initial 2 million tpy agreement signed in December 2024.

As with the first SPA, the LNG will be supplied to Chevron on a free-on-board (FOB) basis and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. The obligations of Energy Transfer LNG under the SPA remain subject to Energy Transfer LNG taking a positive final investment decision (FID), as well as the sat-isfaction of other conditions precedent.

“This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply,” said Tom Mason, President of Energy Transfer LNG. “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."

“This expanded LNG agreement reflects the growing strength of Chevron’s global gas business,” added Freeman Shaheen, President, Chevron Global Gas. “With a diverse, reliable, and flexible supply network, we’re committed to delivering affordable, reliable, and ever-cleaner energy to meet global demand and the evolving needs of our customers.”

 

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26062025/energy-transfer-and-chevron-sign-spa/

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