Midstream energy firm Energy Transfer has inked 25-year sales and purchasing agreement to supply China Gas with 0.7 million tonnes of LNG annually on a free-on-board basis.

The Dallas-based firm on Sunday (5th June) confirmed the new deal that will see deliveries from its Lake Charles LNG project begin from 2026.

News of the deal follows a flurry of sales and purchasing agreement signed by Energy Transfer at a time when companies from across the globe are trying to cut reliance on Russian fuel.

Tom Mason, President of Energy Transfer LNG, said, “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 six million tonnes per annum and is an important step towards our goal of reaching final investment decision later this year.”

Energy Transfer’s Lake Charles LNG export facility will be constructed on the existing brownfield regasification facility and will capitalise on four existing LNG storage tanks, two deep water berths and other LNG infrastructure.

The sales and purchasing agreement will become fully effective upon the satisfaction of the conditions precedent, including Energy Transfer LNG taking final investment decision (FID).

Yalong Qi, General Manager of China Gas Hongda Energy Trading, added, “The LNG sales and purchasing agreement 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 realising China’s carbon peaking and carbon neutrality goals.”