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Energy Transfer (NYSE:ET) said Thursday it agreed to sell up to 1M metric tons/year of liquefied natural gas from its Lake Charles LNG project to Japan’s Kyushu Electric Power (OTCPK:KYSEY) (OTCPK:KYSEF) in a 20-year purchase contract, subject to Energy Transfer taking a positive final investment decision on the project.
The LNG will be supplied on a free-on-board basis, and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark.
The news follows Energy Transfer’s (NYSE:ET) announcement in April of a heads of agreement with MidOcean Energy for ~5M tons/year of LNG production from Lake Charles LNG; the company also recently signed a SPA with an international energy company for 1M tons/year of LNG and an HOA with a German energy company for 1M tons/year of LNG.
The agreement marks Kyushu’s (OTCPK:KYSEY) (OTCPK:KYSEF) first long-term LNG procurement contract from the U.S., and is expected to further diversify the company’s procurement sources and enhance the stability of its LNG supply.