Energy Transfer signs agreement for LNG supply to China Gas

(Reuters) - Energy Transfer LNG, a unit of Energy Transfer LP, entered into a deal to supply 0.7 MMtons of LNG a year to China Gas Holdings on a free-on-board basis for 25 years, the companies said on Sunday.

China Gas Hongda Energy Trading Co. Ltd, a subsidiary of gas distributor China Gas, has entered into an LNG sale and purchase agreement (SPA) with Energy Transfer, related to its Lake Charles LNG project, the companies said.

Cheniere Energy Sabine Pass Lng Terminal - RESIZED

The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge and first deliveries are expected to start in 2026, the statement said.

The SPAs will become fully effective upon the satisfaction of the conditions precedent, including Energy Transfer LNG taking final investment decision (FID).

"This SPA brings our total amount of LNG contracted from our Lake Charles LNG export facility to nearly 6.0 MMtpy and is an important step towards our goal of reaching FID later this year," Tom Mason, president of Energy Transfer LNG said.

(Reporting by Eileen Soreng in Bengaluru; Editing by Shailesh Kuber)

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}