Energy Transfer and Chia Gas sign LNG sale and purchase agreement

Energy Transfer LP and China Gas Holdings Limited entered into an LNG Sale and Purchase Agreement.

Asper the agreement, Energy Transfer LNG will supply 0.7 million tonnes of LNG per annum to China Gas on a free-on-board (FOB) basis.

25-Year agreement for LNG for Supply from Energy Transfer’s Lake Charles LNG Export Facility Represents First Long-Term LNG Contract Signed by China Gas.

The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge. The SPA is for a term of 25 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, including Energy Transfer LNG taking final investment decision (FID).