Energy Transfer has deepened its partnership with Chevron, signing a 20-year incremental sale and purchase agreement (SPA) to supply an additional one million tonnes per annum (mtpa) of liquefied natural gas (LNG) from its Lake Charles LNG export facility.
This expansion brings Chevron’s total contracted volume from the project to 3 mtpa, following an initial 2 mtpa agreement finalised in December 2024.
Under the new SPA, LNG will be delivered to Chevron on a free-on-board basis, with pricing structured as a fixed liquefaction charge plus a component indexed to the Henry Hub benchmark.
Energy Transfer’s obligations under the deal are contingent upon a positive final investment decision (FID) and other conditions precedent.
The Lake Charles LNG project is a cornerstone of Energy Transfer’s export ambitions.
The facility is planned for construction on the site of an existing brownfield regasification terminal in Calcasieu Parish, Louisiana, leveraging four existing LNG storage tanks, two deep-water berths, and established infrastructure.
A key advantage is its direct connection to Energy Transfer’s Trunkline pipeline system, providing access to prolific US natural gas basins including the Haynesville, Permian, and Marcellus shales.
Energy Transfer LNG president Tom Mason emphasised the significance of the agreement, stating: “This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply.
“With Energy Transfer’s strategic infrastructure and connectivity to key production basins, Lake Charles LNG is poised to be a premier export facility, providing long-term value to our partners and the industry.”
The expanded deal with Chevron is part of a broader commercial push for Lake Charles LNG.
Energy Transfer has also secured a heads of agreement with MidOcean Energy for approximately 5 mtpa and an SPA with Kyushu Electric Power Company for 1 mtpa.
These commitments have propelled the project toward its FID threshold, with 80 per cent of the required offtake now secured.
Chevron Global Gas president Freeman Shaheen highlighted the strategic value of the agreement, stating: “This expanded LNG agreement reflects the growing strength of Chevron’s global gas business.
“With a diverse, reliable and flexible supply network, we are committed to delivering affordable, reliable and ever-cleaner energy to meet global demand and the evolving needs of our customers.”
