Energy Transfer to sell LNG to China's ENN

Energy Transfer LP said its LNG unit has entered agreements to supply a total of 2.7 MMt of LNG to ENN Natural Gas and ENN Energy Holdings Ltd. 

Gas companies have rushed to cash in on higher natural gas prices as sanctions on Russian fuel have shocked an already tight supply.

The supply agreements are for a term of 20 years and first deliveries are expected to begin in 2026, the U.S. pipeline company added.

The companies did not disclose the purchase price, but said it is indexed to the Henry Hub benchmark plus a fixed liquefaction charge.

The number of U.S. proposed LNG projects to reach FID is expected to get a push following demand from Europe to replace Russian gas over the next few years.

There are currently 13 proposed U.S. liquefaction projects totaling 22 Bft³d that have received Department of Energy and Federal Energy Regulatory Commission approval, but have not reached FID.

Atop the list of proposals likely to get financial approval this year are Venture Global's Plaquemines and Tellurian Inc.'s Driftwood plant, both in Louisiana, and Cheniere Energy Inc.'s Corpus Christi Stage 3 project in Texas, according to a recent report by Bank of America.

That list could expand in 2023 to include the proposed fourth liquefaction train at Sempra Energy’s Cameron, Venture Global’s Calcasieu Pass Phase 2, and Commonwealth LNG, all in Louisiana, Bank of America said. It also includes Freeport LNG’s proposed fourth liquefaction train at its LNG export plant in Texas.

(Reporting by Ruhi Soni in Bengaluru; Editing by Aditya Soni) 

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