Energy Transfer, Gunvor ink LNG sale deal
US midstream company Energy Transfer and commodity trading house Gunvor said May 2 they had entered into a sale and purchase agreement (SPA) under which Gunvor will take 2mn mt/yr of LNG from Energy Transfer LNG’s proposed Lake Charles project in Louisiana.
The term of the SPA is 20 years and provides for the sale of LNG on a free-on-board basis, indexed to the Henry Hub benchmark price plus a fixed liquefaction charge. First deliveries could start as soon as 2026, pending a final investment decision (FID) on the 16.45mn mt/yr Lake Charles LNG project, a brownfield investment to convert an existing LNG import and regasification facility.
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“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,” said Kalpesh Patel, co-head of LNG trading at Gunvor. “We look forward to a successful, long-term relationship with the Energy Transfer team as their project continues to progress.”
Energy Transfer LNG president Tom Mason said Gunvor’s commitment to Lake Charles “further evidences the progress we are making towards taking FID by year-end.”