Energy Transfer signs agreement for LNG supply to China Gas

China Gas Holdings

06/06/2022 08:12

June 6 (Reuters) - Energy Transfer LNG, a unit of Energy
Transfer LP  ET.N , entered into a deal to supply 0.7 million
tonnes of liquefied natural gas a year to China Gas Holdings
 0384.HK  on a free-on-board basis for 25 years, the companies
said on Sunday.
    China Gas Hongda Energy Trading Co. Ltd, a subsidiary of gas
distributor China Gas, has entered into an LNG sale and purchase
agreement (SPA) with Energy Transfer, related to its Lake
Charles LNG project, the companies said.
    The purchase price is indexed to the Henry Hub benchmark
plus a fixed liquefaction charge and first deliveries are
expected to start in 2026, the statement said.
    The SPAs will become fully effective upon the satisfaction
of the conditions precedent, including Energy Transfer LNG
taking final investment decision (FID).
    "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," Tom Mason, president of Energy Transfer LNG said. 

 (Reporting by Eileen Soreng in Bengaluru; Editing by Shailesh
Kuber)
 ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
eileen.soreng.thomsonreuters.com@reuters.net))