Energy Transfer Secures Two Long Term LNG Agreements

Energy Transfer LP recently announced it has secured two long term Sale and Purchase Agreements for liquefied natural gas (LNG) from its Lake Charles LNG project.

On May 2, the company announced that Energy Transfer LNG Export, LLC, a subsidiary of Energy Transfer LP, had entered into a 20-year SPA with Gunvor Singapore Pte to supply 2 million tonnes of LNG per annum to Gunvor on a free-on-board (FOB) basis.

Then on May 3, the company announced that it had entered into an 18-year SPA with SK Gas Trading LLC for the supply of 0.4 million tonnes per annum (mtpa) of LNG.

Energy Transfer has announced four new SPAs in the last four weeks, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to 5.1 mtpa.

Tom Mason, President of Energy Transfer LNG said “We are 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.”

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). For more information, visit www.energytransfer.com.

About Gunvor

Gunvor is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. Gunvor has strategic investments in industrial infrastructure—refineries, pipelines, storage and terminals—that complement our core trading activity and generate sustainable value across the global supply chain for our customers. The company, which in 2021 generated US $135 billion in revenue on 240 million MT of volumes, is the leading independent global trader of liquefied natural gas (LNG).

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.