Energy Transfer, Shell sign LNG SPA
US-based Energy Transfer through its subsidiary, Energy Transfer LNG Export, has entered into a 20-year LNG sale and purchase agreement (SPA) with Shell related to its Lake Charles LNG project, the company said on August 24.
Under the SPA, Energy Transfer LNG will supply Shell with 2.1mn metric tons/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.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The first deliveries are expected to start in 2026. The SPA will become fully effective upon the satisfaction of the conditions precedent, including Energy Transfer LNG taking a final investment, Energy Transfer said.
Energy Transfer LNG has announced 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.