Under the SPA, LNG will be supplied to Chevron on a free-on-board basis, with pricing comprising a fixed liquefaction charge and a gas supply component linked to the Henry Hub benchmark. Tom Mason, President of Energy Transfer LNG, stated: “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.”
Freeman Shaheen, President of Chevron Global Gas, said: “This expanded LNG agreement reflects the growing strength of Chevron’s global gas business. With a diverse, reliable, and flexible supply network, we’re committed to delivering affordable, reliable, and ever-cleaner energy to meet global demand and the evolving needs of our customers.” The agreement supports Chevron’s strategy to enhance its global gas portfolio while meeting rising energy needs sustainably.
The Lake Charles LNG project, subject to a final investment decision and other conditions, will leverage an existing brownfield regasification site, utilizing four LNG storage tanks and two deepwater berths. The facility connects directly to Energy Transfer’s Trunkline pipeline system, accessing natural gas from the Haynesville, Permian, and Marcellus Shale basins. With a planned capacity of 16.45 mtpa, the project is supported by Technip Energies and KBR, responsible for engineering, procurement, manufacturing, and construction.
This SPA builds on Energy Transfer’s recent commitments, including a heads of agreement with MidOcean Energy for 5 mtpa and an SPA with Kyushu Electric Power Company for 1 mtpa. The Lake Charles LNG project strengthens the region’s role in meeting global demand for cleaner energy, supporting sustainable energy solutions through efficient infrastructure and strategic partnerships.
