Texas-based Energy Transfer LP, the firm that acquired Oklahoma City’s Enable Midstream late last year, reached an agreement to provide LNG to a China company for the next 25 years.
The agreement was with China Gas Hongda Energy Trading Co., LTD, a subsidiary of China Gas Holdings Limited. As a result, Energy Transfer LNG will supply 0.7 million tons of LNG a year to China Gas with the first deliveries to be made as early as 2026.
China Gas Holdings 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.
“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.
Source: Business Wire