Energy Transfer has signed a 20-year deal with Japan’s Kyushu Electric Power Company to supply up to 1 million tpy of LNG from its Lake Charles LNG facility, the company said Thursday.
Under the agreement, LNG will be delivered on a free-on-board basis, with pricing comprising a fixed liquefaction fee and a gas supply cost indexed to the Henry Hub benchmark. The deal is contingent on a positive FID on the Lake Charles project.
Lake Charles LNG is a proposed export facility with planned capacity of up to 16.5 million tonnes per year. It is strategically located on the US Gulf Coast and will leverage existing infrastructure to reduce construction costs and timelines. The project is being developed by Energy Transfer LNG, a subsidiary of Energy Transfer, one of the largest and most diversified midstream energy companies in North America.
“We are proud to be selected as an LNG supplier by Kyushu, one of Japan’s leading energy companies,” Energy Transfer LNG president Tom Mason said.
“Kyushu has been supportive of Lake Charles LNG for a long time and we appreciate their loyalty. We are also pleased that Lake Charles LNG continues to make strong strides toward full commercialisation.”
This marks Kyushu’s first long-term LNG procurement contract from the United States and is expected to boost its supply diversity and security.
Energy Transfer is one of North America’s largest and most diversified midstream energy firms, operating extensive infrastructure across key US production basins. Its Lake Charles project will leverage existing regasification infrastructure, including four LNG storage tanks and two deep water berths, and will be linked to multiple gas basins via the company’s Trunkline pipeline system.