Energy Transfer Signs Sale and Purchase Agreement of LNG With SK Gas Trading LLC

Power & Energy

The company ‘Energy Transfer LP’ has announced the execution of a long-term Sale and Purchase Agreement (SPA) with the SK Gas Trading LLC for the supply of 0.4 million tonnes per annum of the LNG from the Lake Charles LNG export facility of Energy Transfer.

Under the Sale and Purchase Agreement, Energy Transfer LNG Export, LLC is going to be supplying the LNG to SK Gas on the basis of free-on-board (FOB). The purchase price has been indexed to the Henry Hub benchmark along with a fixed liquefaction charge.

The agreement has been made for a term of 18 years and the first deliveries are also expected for commencing as early as 2026 and the agreement is going to fully becoming effective upon the satisfaction of the conditions precedent including Energy Transfer LNG by taking the final investment decision.

The has been the fourth Sale and Purchase Agreement of Energy Transfer in the past four weeks, which is bringing the total amount of the LNG contracted from the company’s Lake Charles LNG export facility to 5.1 mtpa.

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Tom Mason, president of Energy Transfer LNG said, they are very excited for announcing the SK Gas as their first offtake customer based in Korea. He also said that, they are looking forward to a long-term relationship with the SK Gas as it has been growing the company’s domestic and international LNG business and these factors also increase their confidence for taking the FID by the end of 2022.

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