Pipeline company Energy Transfer has struck a deal with Chevron to supply the oil and gas major with liquefied natural gas from a planned terminal in Louisiana.
The Dallas-based company said Thursday that Chevron agreed to buy 2 million metric tons of LNG per year from the Lake Charles LNG project as part of a 20-year sale and purchase agreement. The facility has a planned export capacity of 16.45 million metric tons of LNG per year.
Federal regulators green-lighted the Lake Charles LNG project in late 2015 at the site of an existing import facility, but Energy Transfer is still working toward a final investment decision on the export terminal. The newly unveiled agreement with Chevron is subject to a final investment decision from Energy Transfer on the LNG export project “as well as the satisfaction of other conditions,” according to a news release.
“We believe that Lake Charles is the most compelling LNG project on the Gulf Coast and we continue to make significant progress towards full commercialization of this project,” said Tom Mason, president of Energy Transfer LNG, in a statement.
