Energy Transfer Signs 20-Year Agreement to Supply LNG to Japan’s Kyushu

Energy Transfer LP subsidiary Energy Transfer LNG Export LLC entered into a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with Japan’s Kyushu Electric Power Company Inc. related to its Lake Charles LNG project.

Under the SPA with Kyushu, Energy Transfer LNG will supply up to 1.0 million metric tons per annum (mtpa) of LNG, the company said in a news release.

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, according to the release. The agreement marks Kyushu’s first long-term LNG procurement contract from the USA and will further diversify its procurement sources and enhance the stability of its LNG supply, Energy Transfer said.

“We are proud to be selected as an LNG supplier by Kyushu, one of Japan’s leading energy companies,” Energy Transfer LNG President Tom Mason said. “Kyushu has been supportive of Lake Charles LNG for a long time and we appreciate their loyalty. We are also pleased that Lake Charles LNG continues to make strong strides toward full commercialization”.

The obligations of Energy Transfer LNG under the SPA are subject to Energy Transfer LNG taking a positive final investment decision (FID) on the Lake Charles LNG project and satisfying other conditions precedent, the company said.

If Energy Transfer LNG reaches a positive FID, the Lake Charles LNG export facility would be constructed on the existing brownfield regasification facility site and will capitalize on Energy Transfer’s four existing LNG storage tanks, two deep water berths and other LNG infrastructure, the company said.

Lake Charles LNG would also benefit from its direct connection to Energy Transfer’s existing Trunkline natural gas pipeline system. The system provides connections to multiple intrastate and interstate pipelines, which allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus Shale, Energy Transfer said.

Energy Transfer recently announced a heads of agreement (HOA) with MidOcean Energy for approximately 5.0 mtpa of LNG production from Lake Charles LNG, as well as a SPA with an international energy company for 1.0 mtpa of LNG and an HOA with a German energy company for 1.0 mtpa of LNG.

In February, Energy Transfer entered into a long-term agreement to provide natural gas to CloudBurst Data Centers, Inc.’s flagship AI-focused data center development in Central Texas.

Energy Transfer subsidiary Oasis Pipeline, LP will provide up to 450,000 million British thermal units (MMBtu) per day of firm natural gas supply to CloudBurst’s Next-Gen Data Center campus outside San Marcos, Texas, subject to CloudBurst reaching a final investment decision (FID) with its customer.

The natural gas supply would be sufficient to generate up to approximately 1.2 gigawatts of direct, or “behind-the-meter” electric power for a period of at least 10 years starting with phase 1 of the data center facilities, Energy Transfer said in an earlier statement.

The company approved the construction of an additional natural gas processing plant in the Midland Basin. The Mustang Draw plant will have a processing capacity of approximately 275 million cubic feet per day and is expected to be in service in the second quarter of 2026.

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