Energy Transfer LP said Wednesday it had signed an incremental agreement with Chevron Corp. for additional volumes of 1 million metric tons per annum (MMtpa) from the planned Lake Charles LNG, increasing Chevron’s offtake from the Louisiana project to 3 MMtpa.
The expanded agreement, which builds on the initial one signed December 2024, commits supply for Chevron for 20 years.
“This expanded LNG agreement reflects the growing strength of Chevron’s global gas business”, Freeman Shaheen, president at Chevron Global Gas, said in a statement issued by Energy Transfer.
Tom Mason, president of Energy Transfer LNG, commented, “This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply”.
“With Energy Transfer’s strategic infrastructure and connectivity to key production basins, Lake Charles LNG is poised to be a premier export facility, providing long-term value to our partners and the industry”, Mason added.
The purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark.
Recently MidOcean Energy signed a heads of agreement for about 5 MMtpa from Lake Charles LNG, while Kyushu Electric Power Co. placed an offtake of 1 MMtpa.
Planned to have an export capacity of 16.45 MMtpa, Lake Charles LNG would be built as a conversion from an existing regasification site.
Energy Transfer says the project has all authorizations from the Federal Energy Regulatory Commission. And in September 2024, it awarded an engineering, procurement and construction contract to a joint venture between KBR Inc. and Technip Energies NV.
While the Department of Energy (DOE) previously granted the project an export permit, the agency’s denial later of an export start date extension has resulted in Energy Transfer refiling for export authorization, according to a company letter to the DOE February 25, 2025, pleading for a positive decision.
In 2023 the DOE under the Biden administration denied Energy Transfer’s application to extend to 2028 the 2025 deadline for the project to dispatch its first cargo. Energy Transfer that same year re-filed for an extension, seeking 7 more years from the date of the new requested authorization, presumably 2031.
In April 2025 the DOE said it has removed Biden-era restrictions on requests to extend the export commencement deadlines of LNG projects. A project for which such a request is made no longer has to be under construction or has to demonstrate that circumstances outside its control prevented the start of exportation within 7 years.
Instead, the DOE will review requests “on a case-by-case basis”, the DOE said in an online statement April 1, noting the permitting process is already “extensive”.
On April 17, 2025, Energy Transfer filed a new application seeking to extend its deadline from 2025 to 2031.
The online portal of the Federal Register shows the application is undergoing a public comment period that closes July 2.
To contact the author, email jov.onsat@rigzone.com
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