Energy Transfer Signs LNG Sale and Purchase Agreement With Gunvor
May 02 2022 - 12:30PM
Business Wire
Energy Transfer LNG Export to supply LNG to
Gunvor Singapore Pte from its Lake Charles LNG Export Facility
Under 20-year Agreement
Energy Transfer LP (NYSE: ET) and Gunvor Group Ltd today
announced that Gunvor Singapore Pte Ltd (Gunvor) has entered into
an LNG Sale and Purchase Agreement with Energy Transfer LNG Export,
LLC (Energy Transfer LNG), a subsidiary of Energy Transfer LP,
related to its Lake Charles LNG project.
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Under the SPA, Energy Transfer LNG will supply 2 million tonnes
of LNG per annum to Gunvor on a free-on-board (FOB) basis. The
purchase price is indexed to the Henry Hub benchmark plus a fixed
liquefaction charge. The SPA is for a term of 20 years, and first
deliveries are expected to commence as early as 2026. The SPAs will
become fully effective upon the satisfaction of the conditions
precedent, including Energy Transfer LNG taking final investment
decision (FID).
“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. We look
forward to a successful, long-term relationship with the Energy
Transfer team as their project continues to progress,” said Kalpesh
Patel, Co-Head of LNG Trading of Gunvor.
“Gunvor is a well-known participant in the LNG industry, and we
are excited to have them as a customer,” said Tom Mason, President
of Energy Transfer LNG. “Gunvor’s commitment to Lake Charles
further evidences the progress we are making towards taking FID by
year end.”
Energy Transfer is one of the largest and most diversified
midstream energy companies in North America, with a strategic
footprint in all of the major U.S. production basins. Energy
Transfer's Lake Charles LNG export facility will be constructed on
the existing brownfield regasification facility and will capitalize
on four existing LNG storage tanks, two deep water berths and other
LNG infrastructure. Lake Charles LNG will also benefit from its
direct connection to Energy Transfer’s existing Trunkline pipeline
system that in turn provides connections to multiple intrastate and
interstate pipelines. These pipelines allow access to multiple
natural gas producing basins, including the Haynesville, the
Permian and the Marcellus Shale.
About Gunvor
Gunvor is one of the world’s largest independent commodities
trading houses by turnover, creating logistics solutions that
safely and efficiently move physical energy from where it is
sourced and stored to where it is demanded most. Gunvor has
strategic investments in industrial infrastructure—refineries,
pipelines, storage and terminals—that complement our core trading
activity and generate sustainable value across the global supply
chain for our customers. The company, which in 2021 generated US
$135 billion in revenue on 240 million MT of volumes, is the
leading independent global trader of liquefied natural gas
(LNG).
About Energy Transfer
Energy Transfer LP (NYSE: ET) owns and operates one of the
largest and most diversified portfolios of energy assets in North
America, with a strategic footprint in all of the major U.S.
production basins. Energy Transfer is a publicly traded limited
partnership with core operations that include complementary natural
gas midstream, intrastate and interstate transportation and storage
assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminalling assets; and NGL fractionation.
Energy Transfer also owns Lake Charles LNG Company, as well as the
general partner interests, the incentive distribution rights and
28.5 million common units of Sunoco LP (NYSE: SUN), and the general
partner interests and 46.1 million common units of USA Compression
Partners, LP (NYSE: USAC).
Forward Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. An extensive list of factors that can affect
future results are discussed in the Partnership’s Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. In addition to the risks and
uncertainties previously disclosed, the Partnership has also been,
or may in the future be, impacted by new or heightened risks
related to the COVID-19 pandemic, and we cannot predict the length
and ultimate impact of those risks. The Partnership undertakes no
obligation to update or revise any forward-looking statement to
reflect new information or events.
The information contained in this press release is available on
our website at energytransfer.com.
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Investor Relations: Bill Baerg Brent Ratliff Lyndsay Hannah
214-981-0795
Media Relations: Vicki Granado Lauren Atchley 214-840-5820
media@energytransfer.com
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