The Chinese energy groups ENN NG and ENN Energy have entered into LNG Sale and Purchase Agreements (SPAs) with the US energy group Energy Transfer LNG, related to its Lake Charles LNG export project located in Louisiana (United States). Under the two SPAs, Energy Transfer LNG will supply 1.8 Mt/year of LNG to ENN NG, and 0.9 Mt/year of LNG to ENN Energy on a free-on-board (FOB) basis. The purchase price will be indexed to the Henry Hub benchmark plus a fixed liquefaction charge. Both SPAs are for a term of 20 years, and first deliveries are expected to commence as early as 2026.
The SPAs will become fully effective upon the satisfaction of the conditions precedent by Energy Transfer LNG, including reaching final investment decision (FID) on its Lake Charles LNG export project. The proposed liquefaction plant will have a capacity of 17.5 Mt/year (3 trains of 5.5 Mt/year each) and will use the existing LNG storage tanks of the Lake Charles regasification terminal. The LNG plant is expected to cost US$10.9bn.
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