Energy Transfer Signs LNG Sale and Purchase Agreement With SK Gas Trading LLC
May 03 2022 - 12:40PM
Business Wire
Energy Transfer LNG Export to Supply LNG to
SK Gas Trading LLC from its Lake Charles LNG Export Facility Under
18-Year Agreement
Energy Transfer LP (NYSE: ET) today announced the
execution of a long-term Sale and Purchase Agreement (SPA) with SK
Gas Trading LLC (SK Gas) for the supply of 0.4 million tonnes per
annum (mtpa) of LNG from Energy Transfer’s Lake Charles LNG export
facility.
Under the SPA, Energy Transfer LNG Export, LLC (Energy Transfer
LNG) will supply LNG to SK Gas 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 18 years, and first
deliveries are expected to commence as early as 2026. The SPA will
become fully effective upon the satisfaction of the conditions
precedent, including Energy Transfer LNG taking final investment
decision (FID).
This is Energy Transfer’s fourth SPA announced in the last four
weeks, bringing the total amount of LNG contracted from its Lake
Charles LNG export facility to 5.1 mtpa.
“We are excited to announce SK Gas as our first Korean offtake
customer,” said Tom Mason, President of Energy Transfer LNG. “We
look forward to a long-term relationship with SK Gas as it grows
its domestic and international LNG business. We are also pleased
with the level of interest in our Lake Charles LNG export project
from international customers who need LNG supply and from domestic
natural gas producers who will benefit from expanding U.S. exports
of natural gas. These factors increase our confidence for taking
FID by the end of this year.”
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 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).
About SK Gas Trading LLC
SK Gas Trading LLC. is the US trading entity of SK Gas and has
been exporting and trading LPG out of US since 2015. SK Gas is a
leading provider of liquefied petroleum gas in Korea and is
expanding its business to include LNG by constructing an LNG import
terminal in Ulsan, Korea. Construction of this terminal is expected
to be complete by the end of 2024 and, upon commercial operation,
will supply LNG for power generation and industrial applications.
SK Gas is an affiliate of SK Group, an international energy,
chemicals and industrial conglomerate headquartered in Seoul,
Korea.
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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