China Gas Hongda Energy Trading Co Ltd, a subsidiary of China Gas Holdings Limited has entered into an LNG Sale and Purchase Agreement with Energy Transfer LNG Export LLC, a subsidiary of Energy Transfer LP, associated with its Lake Charles LNG project.
Under the agreement which is for a term of 25 years, China Gas will be supplied with 0.7 million tonnes of LNG per year on a free-on-board basis by Energy Transfer LNG.
The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge, the companies said, while the first deliveries are due to begin as early as 2026.
“This LNG SPA signed with Energy Transfer LNG, which is the first long-term contract of China Gas, strengthens our existing portfolio for the import of LNG, and will further enable China Gas to reliably and securely meet our natural gas customers’ needs. It is also an important step along the path to realizing China’s carbon peaking and carbon neutrality goals,” Yalong Qi, General Manager of China Gas Hongda Energy Trading Co Ltd, said in a press release.
“China Gas is a premier natural gas distribution company in China, and we are pleased to enter into this 25-year LNG offtake agreement with them. This SPA brings our total amount of LNG contracted from our Lake Charles LNG export facility to nearly 6.0 mtpa and is an important step towards our goal of reaching final investment decision later this year,” Tom Mason, President of Energy Transfer LNG, said.