Energy Transfer Signs LNG Supply Agreement with China Gas for Lake Charles Project

China Gas signed a 25-year agreement for LNG supply from Energy Transfer's Lake Charles LNG export facility, representing the first long-term LNG contract the company has signed.

Hart Energy Staff

China Gas Hongda Energy Trading Co. Ltd., a subsidiary of China Gas Holdings Ltd., has entered into an LNG sale and purchase agreement (SPA) with Energy Transfer LNG Export, LLC, a subsidiary of Energy Transfer LP, related to its Lake Charles LNG project, a June 5 press release announced.

Under the 25-year agreement, Energy Transfer LNG will supply 0.7 million tonnes per annum (mtpa) of LNG to China Gas on a free-on-board basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge, with first deliveries expected as early as 2026.

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