Announcement Related to Lake Charles LNG Signing Heads of Agreements for a Total of 3.6 MTPA

Energy Transfer LP announced today that it has entered into three non-binding Heads of Agreement (HOAs) related to long-term LNG offtake from its Lake Charles LNG project for an aggregate of 3.6 mtpa. One of the HOAs specifies that a Japanese consortium would purchase 1.6 mtpa for a 20-year term, subject to an option to convert the offtake arrangement to an equity participation providing for the same volume of LNG. Under one of the HOAs, Chesapeake Energy Marketing LLC would supply to Lake Charles LNG volumes of natural gas sufficient to produce 1.0 mtpa of LNG for a period of 15 years and, post liquefaction, Gunvor Singapore Pte Ltd would purchase LNG from Chesapeake at a price indexed to the Japan Korea Marker (JKM) for a period of 15 years. The other HOA is with a U.S. customer and relates to a tolling arrangement for 1.0 mtpa for a 15-year term. The HOAs are subject to the negotiation and execution of definitive agreements. “We are pleased with the continued confidence of our customers in the Lake Charles LNG project,” said Tom Mason, President of Lake Charles LNG. “These HOAs are important for the successful development of the project, along with the continuation of certain pre-FID work with one of our EPC contractors.” [continue reading]

Lake Charles LNG Facility

Energy Transfer is developing a world-class LNG export facility on the U.S. Gulf Coast.

The Project

Energy Transfer plans to convert its existing Lake Charles LNG import and regasification facility into a LNG export facility. It is the only brownfield project among those in the pre-FID process.

Permit Ready

The Lake Charles LNG project is fully permitted, uses existing infrastructure, and benefits from abundant natural gas supply through existing connections to the Henry Hub and connectivity to Energy Transfer's vast network of natural gas pipelines.

Environmentally Sensitive

The project will use a best available techniques concept to be a class leader in terms of environment emissions, performance and efficiency.

Economic Benefits

The project is estimated to create up to 5,000 jobs during construction and 200 full-time positions when fully operational. Recapitalizing on its existing assets provides a cost advantage over other proposed LNG projects on the Gulf Coast.

LNG Future

The facility will be an important part of the future of Louisiana’s growing LNG industry.

Project Framework

The project, if sanctioned through an affirmative FID, will have a liquefaction capacity of 16.45 million tonnes per annum.

Project Milestone

The Lake Charles LNG project received approval from FERC on December 5, 2019 for a five-year extension to build an LNG export facility and place it into service.

Energy Leadership

Energy Transfer is one of the largest pipeline midstream operators in the U.S. with nearly 125,000 miles of pipelines and related energy infrastructure in 41 U.S. states.