Energy Transfer LP (ET) said Monday it has agreed to supply a Chinese utility with 0.7 million metric tons/year (mmty) of liquefied natural gas (LNG) from its proposed Lake Charles LNG export terminal in Louisiana. 

The 25-year deal between Energy Transfer LNG Export LLC and a subsidiary of China Gas Holdings Ltd. is the fifth sales and purchase agreement (SPA) ET has signed this year to bring the plant closer to reality. The company is targeting a final investment decision (FID) for the 16.45 mmty facility later this year. 

Under the latest SPA, ET would supply LNG on a free-on-board basis at prices indexed to Henry Hub plus a fixed liquefaction fee. ET continues to indicate that first deliveries from the Lake Charles facility could begin in 2026.

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