Energy Transfer LP to supply LNG to Kyushu Electric Power Company

Energy Transfer LP (ET) subsidiary Energy Transfer LNG Export has entered into a 20-year LNG Sale and Purchase Agreement with Kyushu Electric Power Company related to its Lake Charles LNG project. Under the SPA with Kyushu, Energy Transfer LNG will supply up to 1.0 mtpa of LNG. The LNG will be supplied on a free-on-board basis, and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. The obligations of Energy Transfer LNG under the SPA are subject to Energy Transfer LNG taking a positive final investment decision on the Lake Charles LNG project and satisfying other conditions precedent. The agreement marks Kyushu’s first long-term LNG procurement contract from the U.S. If Energy Transfer LNG reaches a positive FID, the Lake Charles LNG export facility would be constructed on the existing brownfield regasification facility site.