Energy Alliance: Energy Transfer LNG and Chevron Seal Long-Term Supply Agreement

The subsidiary Energy Transfer LNG Export of Energy Transfer has entered into a significant agreement with Chevron. Under this 20-year agreement, Chevron will annually procure two million tons of LNG from the Lake Charles LNG project. The agreement stipulates that Energy Transfer LNG will meet the liquefied natural gas demand on a free-on-board basis. The pricing structure combines a fixed liquefaction fee with a price component linked to the Henry Hub benchmark. The execution of the contract is subject to Energy Transfer LNG's final investment decision and other prerequisites. Tom Mason, President of Energy Transfer LNG, emphasizes that Chevron's choice as a customer underscores the attractiveness of Lake Charles LNG. The project in the Gulf Coast region is progressing rapidly towards full commercialization and offers significant infrastructural advantages due to its location on an existing regasification site. Freeman Shaheen, President of Chevron Global Gas, stated that LNG plays a central role in meeting global energy needs while supporting ambitious climate goals. The new agreement reflects Chevron's commitment to improving access to affordable and increasingly sustainable energy sources. Another advantage of the Lake Charles LNG project is the direct connection to Energy Transfer's extensive Trunkline pipeline system, which links numerous critical natural gas regions such as Haynesville, Permian, and the Marcellus Shale. Recently, Energy Transfer announced the final investment decision for a new natural gas pipeline that will connect Permian Basin production to key markets. The "Warrior Pipeline" was renamed "Hugh Brinson Pipeline" in honor of Hugh Brinson and is expected to be operational by the end of 2026.