2023-07-14 09:25:55 ET
Energy Transfer ( NYSE: ET ) said Friday it entered into three long-term agreements to sell liquefied natural gas from its proposed Lake Charles LNG export project in Louisiana.
The three non-binding heads of agreement combine for 3.6M metric tons/year of LNG to be exported to customers in Asia and the U.S., the company said.
Energy Transfer ( ET ) said the first HOA is with an unnamed Japanese consortium for the purchase of 1.6M tons/year for a 20-year term.
The second deal would see Chesapeake Energy ( CHK ) supply Lake Charles LNG with enough volumes of gas to produce 1M tons/year for 15 years; after liquefaction, Swiss commodities trader Gunvor would buy LNG from Chesapeake at a price indexed to the Japan Korea Marker for 15 years.
The third HOA is with an unnamed U.S. customer and involves a tolling arrangement for 1M tons/year for 15 years, the company said.
Energy Transfer ( ET ) announced the agreements even though the U.S. Department of Energy has so far refused to extend Lake Charles' authorization to sell LNG to non-Free Trade Agreement countries beyond December 2025.
More on Energy Transfer:
- Financial and valuation comparison to sector peers
- Analysis: Energy Transfer: The Lake Charles Debacle And Why You Should Buy
- Stock price return: Up 12% YTD, up 32% in the past 12 months
For further details see:
Energy Transfer signs three LNG offtake agreements for Lake Charles project