The US oil and gas major Chevron has signed a 20-year sales and purchase agreement (SPA) with Energy Transfer LNG, under the terms of which Chevron will purchase 1 Mt/year of LNG from the Lake Charles LNG export terminal, located in the US State of Louisiana.
With this new SPA, Chevron has increased its total contracted volume with Energy Transfer LNG to 3 Mt/year, following an initial 2 Mt/year agreement signed in December 2024. The LNG volumes will be supplied to Chevron on a free-on-board (FOB) basis, with the purchase price consisting of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark.
The proposed Lake Charles LNG export terminal, developed by Energy Transfer, will have a capacity of 16.5 Mt/year (three 5.5 Mt/year liquefaction trains) and is planned to become operational by 2028. It has also signed a Heads of Agreement (HOA) with MidOcean Energy for approximately 5 Mt/year and an SPA with Kyushu Electric for 1 Mt/year.