Energy Transfer LNG Export, LLC recently secured an LNG Sale and Purchase Agreement (SPA) with Gunvor Singapore Pte Ltd to further develop its Lakes Charles LNG project, according to a press release.
“We are pleased to partner with Energy Transfer, which is a significant step in executing Gunvor’s overall strategy of uncovering and securing low-cost resources and implementing competitive and reliable deliveries to our LNG buyers,” co-head of LNG Trading of Gunvor, Kalpesh Patel, said in the release. “We look forward to a successful, long-term relationship with the Energy Transfer team as their project continues to progress.”
Set to become effective once conditions precedents have been fulfilled, including Energy Transfer LNG taking final investment decision (FID), the terms of the agreement will require Energy Transfer LNG to supply two million tons of free-on-board LNG per annum to Gunvoar. It also requires a fixed liquefaction charge. The duration of the SPA is set to be 20 years. The first deliveries could be carried out as early as 2026, according to the press release.
With production basins across the U.S, Energy Transfer, based in Texas, serves as the largest energy company to serve North America. Its Lake Charles LNG export facility is next to be constructed at the brownfield regasification facility and is set to profit from four existing LNG storage tanks.
According to the press release, the system will provide several connections to intrastate and interstate pipelines, the company’s trunkline pipeline system, and access to various natural gas producing basins, such as the Haynesville, the Permian and the Marcellus Shale.
“Gunvor is a well-known participant in the LNG industry, and we are excited to have them as a customer,” President of Energy Transfer LNG, Tom Mason, said in the release. “Gunvor’s commitment to Lake Charles further evidences the progress we are making towards taking FID by year end.”