Page 14 - GLNG Week 23 2022

GLNG AMERICAS GLNG

Energy Transfer finalises

another offtake agreement

OFFTAKE US-BASED Energy Transfer has signed an LNG president, Tom Mason.
sales and purchase agreement (SPA) with China The latest announcement comes amid rising
Gas Hongda Energy Trading, a subsidiary of demand for LNG and increased global com-
China Gas Holdings. petition for supplies in the wake of the war in
The deal is the fifth to be signed by Energy Ukraine, which has led to European countries
Transfer since March for supply of LNG from its seeking out alternatives to Russian gas. Against
proposed Lake Charles LNG terminal in Louisi- this backdrop, Asian buyers – who were likely
ana. It brings a final investment decision (FID) already in negotiations when the war broke out
on the terminal a step closer. – have wasted no time in signing new long-term
Under the newly announced deal, China offtake agreements.
Gas will buy 700,000 tonnes per year (tpy) of Indeed, with the exception of commodity
LNG from Energy Transfer subsidiary Energy trader Gunvor, all of the buyers Energy Transfer
Transfer LNG Export on a free-on-board (FOB) has lined up so far have been Asian companies.
basis for a period of 25 years. The purchase price Lake Charles LNG is a brownfield project
will be indexed to the US’ Henry Hub bench- that involves conversion of an existing import
mark plus a fixed liquefaction fee. Deliveries are facility to exports. The export plant would have
expected to begin in 2026. a liquefaction capacity of 16.5mn tpy, so there is
“This SPA brings our total amount of LNG still some way to go in terms of signing up offtak-
contracted from our Lake Charles LNG export ers. Nonetheless, the past few months come as a
facility to nearly 6.0 mtpa and is an important major boost for the project, which was previously
step towards our goal of reaching FID later seen as less likely to reach FID anytime soon. ™
this year,” commented Energy Transfer LNG’s

P14 www. NEWSBASE .com Week 23 10•June•2022