US-based Energy Transfer said on August 24 that through its subsidiary, Energy Transfer LNG Export, it has entered into a 20-year LNG sale and purchase agreement (SPA) with Shell, related to its Lake Charles LNG project.
Under the SPA, Energy Transfer LNG will supply Shell with 2.1mn metric tonnes/year of LNG. The fuel will be supplied on a free-on-board (FOB) basis and the purchase price will be indexed to the Henry Hub benchmark, plus a fixed liquefaction charge.
The first deliveries are expected to start in 2026. Energy Transfer says that the SPA will become fully effective upon the satisfaction of the condition’s precedent, including Energy Transfer LNG taking a final investment.
Energy Transfer LNG has declared six SPAs in the last five months, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to nearly 8mn mt/yr. In June it signed an agreement with Chinese gas distributor China Gas Hongda Energy Trading Co.
Lake Charles LNG export facility will be constructed on the existing brownfield regasification facility and will capitalise on four existing LNG storage tanks, two deep water berths and other LNG infrastructure.
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