Energy Transfer LNG Export, LLC, a subsidiary of Energy Transfer LP, has entered into a contract with Shell NA LNG LLC to supply LNG from Lake Charles.

The 20-year LNG Sales and Purchase Agreement, announced by Energy Transfer LP on Monday, August 22, will see its subsidiary deliver 2.1 million tonnes of LNG annually for the next 20 years. Energy Transfer LNG Export will supply the LNG on a free-on-board basis, with the purchase price indexed to the Henry Hub benchmark.

The Sales and Purchase Agreement will only become effective once its conditions are met, including Energy Transfer LNG making the final investment decision. The company is expected to commence deliveries in early 2026.

“We believe that Lake Charles is the most competitive LNG project on the Gulf Coast. And we are particularly pleased that one of the most prominent LNG industry participants has selected Lake Charles LNG as a supplier,” said Tom Mason, Energy Transfer LNG’s president.

Energy Transfer LNG has entered into six SPAs in the last five months, with the contracts from Lake Charles LNG export totaling almost 8 million tonnes per annum.

Building on Long-standing Partnership

Mason said his company and Shell had established a long-standing relationship, with Shell as its Lake Charles’ regasification facility customer. He expressed his excitement at having Shell re-engage in the LNG project, adding that the SPA was a demonstration of their belief in the project and commitment to deliver the much-needed natural gas to the global market.

Steve Hill, Shell’s Energy Marketing VP, stated that LNG was a flexible energy source connecting demand and supply centers worldwide and delivering reliable energy to many people. He said they were happy to work with Energy Transfer once more.

The Lake Charles Energy LNG export facility on the Gold Coast is authorized by the Federal Energy Regulatory Commission and Department of Energy. Energy Transfer will construct the facility on the existing brownfield regasification facility site. It will use the four gas storage facilities, two deep water berths, and other LNG infrastructure already on site.

Lake Charles LNG export facility will be connected directly to the company’s existing Trunkline pipeline system that connects to interstate and intrastate pipelines.