Energy Transfer Signs LNG Sale and Purchase Agreement With China Gas
June 05 2022 - 8:00PM
Business Wire
25-Year Agreement for LNG for Supply from
Energy Transfer’s Lake Charles LNG Export Facility Represents First
Long-Term LNG Contract Signed by China Gas
Energy Transfer LP (NYSE: ET) and China Gas Holdings
Limited (HKEX:00384) today announced that China Gas Hongda
Energy Trading Co., LTD, a subsidiary of China Gas Holdings Limited
(China Gas) has entered into an LNG Sale and Purchase Agreement
with Energy Transfer LNG Export, LLC (Energy Transfer LNG), a
subsidiary of Dallas-based Energy Transfer LP, related to its Lake
Charles LNG project.
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Under the SPA, Energy Transfer LNG will supply 0.7 million
tonnes of LNG per annum to China 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 25
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).
“This LNG SPA signed with Energy Transfer LNG, which is the
first long-term contract of China Gas, strengthens our existing
portfolio for the import of LNG, and will further enable China Gas
to reliably and securely meet our natural gas customers’ needs. It
is also an important step along the path to realizing China’s
carbon peaking and carbon neutrality goals,” said Yalong Qi,
General Manager of China Gas Hongda Energy Trading Co., LTD.
“China Gas is a premier natural gas distribution company in
China, and we are pleased to enter into this 25-year LNG offtake
agreement with them,” said Tom Mason, President of Energy Transfer
LNG. “This SPA brings our total amount of LNG contracted from our
Lake Charles LNG export facility to nearly 6.0 mtpa and is an
important step towards our goal of reaching FID later 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 has received all federal,
state and local permits necessary for the construction for the
project, including authorizations from the Federal Energy
Regulatory Commission, as well as export authorizations from the
Department of Energy. 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 China Gas
China Gas Holdings Limited (HKEX: 00384) is a leading gas
service provider in China, principally engaged in the investment,
construction and management of city gas pipeline infrastructure,
distribution of natural gas and LPG to residential, industrial and
commercial users, and gas refilling stations for vehicles and
vessels. China Gas owns a total of 652 city and township gas
projects with concession rights, 32 natural gas long-distance
pipeline transmission projects, 554 CNG/LNG refilling stations for
vehicles, as well as the license to import and export LNG and other
fuel products in China, in addition to 113 LPG distribution
projects.
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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Media Relations Vicki Granado or
Lauren Atchley 214-840-5820 media@energytransfer.com
Investor Relations Bill Baerg,
Brent Ratliff or Lyndsay Hannah 214-981-0795
Energy Transfer (NYSE:ET)
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