Energy Transfer LNG, a subsidiary of Energy Transfer LP. Energy Transfer LP, has signed a 20-year liquefied natural gas(LNG) purchase and sale agreement with Kyushu Electric Power Company, one of Japan’s leading energy companies. This agreement provides for the annual supply of up to one million tons of LNG from the Lake Charles LNG project.
LNG supply for Lake Charles project
This long-term contract also represents Kyushu’ s first LNG purchase from the United States, diversifying its sources and contributing to the stability of its energy supply. The agreed price combines a fixed liquefaction charge and a variable component indexed to the Henry Hub, the U.S. benchmark for natural gas.
The Lake Charles LNG project is at an advanced stage, awaiting a final positive investment decision(FID). If made, the plant will be built on Energy Transfer’s existing infrastructure, taking advantage of four storage tanks and two deepwater berths, which will facilitate the efficient export of LNG.
In addition, the project will benefit from a direct connection to the Trunkline pipeline system, which provides access to major natural gas producing basins in the United States, such as the Haynesville, Permian and Marcellus Shale.
We are proud to have been selected as an LNG supplier by Kyushu, one of Japan’s leading energy companies.
Kyushu has been a long-time supporter of Lake Charles LNG and we appreciate their loyalty.
We are also pleased that Lake Charles LNG continues to take firm steps towards full commercialization.
The development of Lake Charles LNG reaffirms the position of Energy Transfer as one of the largest energy transportation and supply companies in North America. It is strategically located and diversified, allowing efficient access to natural gas sources that drive LNG exports to key markets such as Japan.
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Source and photo: Energy Transfer LP
