The Lake Charles LNG export facility will be constructed on a brownfield regasification site with four existing LNG storage tanks, two deep water berths, and other LNG infrastructure.
Energy Transfer LNG Export signed a 20-year LNG sale and purchase agreement (SPA) with Chevron U.S.A., supplying 2 MTPA from its Lake Charles LNG project. The SPA is subject to a final investment decision and other customary closing conditions:
“We are pleased that Chevron has selected Lake Charles LNG as a supplier,” said Tom Mason, President of Energy Transfer LNG. “We believe that Lake Charles is a compelling LNG project on the Gulf Coast, and we continue to make progress towards full commercialization of this project.”
Lakes Charles LNG
Energy Transfer’s Lake Charles LNG export facility will be built on a current brownfield regasification site that contains four LNG storage tanks, two deep-water berths, and additional LNG infrastructure, with connections to the company’s Trunkline pipeline system to divert LNG to intra- and interstate pipelines. These connections permit access to numerous natural gas-producing basins: Haynesville, Permian, and the Marcellus Shale.
“Chevron believes LNG plays an important role in meeting the world’s need for energy while helping advance lower carbon ambitions,” said Freeman Shaheen, President, Chevron Global Gas. “This new long-term agreement demonstrates our focus on increasing access to affordable, reliable, ever-cleaner energy supplies to meet growing global demand.”
Energy Transfer & Sunoco
In July 2024, Energy Transfer and Sunoco entered a joint venture to combine respective crude oil and produced water-gathering assets in the Permian Basin. Energy Transfer will operate the joint venture and add its Permian crude oil and water gathering assets and operations, while Sunoco will contribute its crude oil gathering assets.
Energy Transfer’s long-haul crude pipeline network—excluded from the joint venture—transports crude oil from the Permian Basin to Nederland, Houston, and Cushing. The joint venture will operate more than 5,000 miles of crude oil and water gathering pipelines with a crude oil storage capacity over 11 million barrels. Sunoco will hold a 32.5% interest and Energy Transfer will hold a 67.5% interest in the joint venture.
The LNG Industry
The global LNG market is slated to experience a shift starting in late 2024, as a wave of new liquefaction projects comes online. The Institute for Energy Economics and Financial Analysis (IEEFA) expects global LNG production capacity (only projects under construction or approved by financially capable backers) to grow by roughly 193 MTPA from 2024 - 2028, rising from ~474 MTPA of nameplate capacity at the beginning of 2024 to 666.5 MTPA by the end of 2028—the fastest capacity growth in the history of the global LNG industry, representing a 40% increase in five years.
IEEFA said the LNG industry’s capacity to export U.S. gas is set to grow from 94 MTPA to 172 MTPA by 2028. Five U.S. LNG projects, totaling more than 71 MTPA in liquefaction capacity, are currently under construction: