Energy Transfer LP and ENN Natural Gas with ENN Energy Holdings Limited announce LNG sale and purchase agreements with Energy Transfer LNG Export.
Energy project
Firstly, under the two SPAs, ET LNG is expected to supply 1.8 million tonnes of LNG to ENN NG; and 0.9 million tonnes of LNG to ENN Energy per annum.
Secondly, the purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge. Both SPAs are for 20 years, and first deliveries are expected to commence as early as 2026.
Moreover, the SPAs will become fully effective upon the satisfaction of the conditions precedent by ET LNG, including reaching FID.
The signing of these long-term SPAs will further enrich ENN’s LNG resources, expand resource supply channels, and improve ENN’s natural gas supply capacity to meet the rapidly growing natural gas demand in the domestic market.
Zheng Hongtao, President of ENN NG and Vice Chairman of the Board of Directors of ENN Energy Holdings.
We are happy to have ENN as a customer. The execution of these two SPAs represents a significant event in moving the Lake Charles LNG project towards FID. We are experiencing strong demand for long-term offtake contracts for Lake Charles LNG, and we are optimistic that we will be able to take a positive FID by year-end.
Tom Mason, President of ET LNG.
Energy Transfer
Energy Transfer is one of the largest and most diversified midstream energy companies in North America; with a strategic footprint in major U.S. production basins.
Also, the core operations include complementary natural gas midstream, intrastate, and interstate transportation and storage assets; crude oil, natural gas liquids (NGL), refined product transportation and terminalling assets; and NGL fractionation.
In addition, the company owns and operates approximately 120,000 miles of pipelines and associated energy infrastructure across 41 states. It transports about 30% of the United States’ oil and natural gas.
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Lake Charles facilities
Firstly, Lake Charles LNG will be constructed on the existing brownfield regasification facility. It will capitalize on four existing LNG storage tanks, two deepwater berths, and other LNG infrastructure.
Also, Lake Charles LNG will benefit from its connection to Energy Transfer’s existing Trunkline pipeline system; which provides links to multiple intrastate and interstate pipelines.
Besides, these pipelines allow access to multiple natural gas-producing basins, including the Haynesville, the Permian, and the Marcellus Shale.
In addition, ENN NG has an annual LNG distribution capacity of over 10 bcm; and runs the first large-scale private LNG terminal in China, Zhoushan LNG Terminal.
As well, its business layout covers the entire natural gas value chain, including distribution, trading, storage and transportation, and production and engineering.
Furthermore, relying on industry best practices, ENN NG has built an intelligent operation platform for the natural gas industry, GreatGas.cn
Besides, it accelerates the aggregation of the natural gas industry’s demand, resources, reserves, and delivery ecology. It also innovates and develops digital intelligence services and promotes the digital intelligence upgrade of the natural gas industry.
However, in 2021, ENN NG’s total natural gas sales volume was 37.2 bcm; accounting for approximately 10% of China’s total natural gas consumption.
About Energy Transfer
Energy Transfer LP owns and operates one of the largest and most diversified portfolios of energy assets in North America.
Finally, the company’s core operations include complementary natural gas midstream, intrastate, and interstate transportation and storage assets; crude oil, natural gas liquids (NGL), refined product transportation and terminalling assets; and NGL fractionation.
For more information, visit the Energy Transfer LP website.
About ENN Natural Gas
The organization is one of the largest independent energy companies in China. It covers the complete natural gas value chain; from downstream distribution to midstream transportation and storage and upstream production and procurement.
For more information, visit.
