Unveiling details of the agreement on Tuesday (3rd May), the duo said the deal has been agreed for a term of 18 years, with the first deliveries expected to commence as early as 2026.
The deal marks Energy Transfer’s fourth sales and purchasing agreement in the last four weeks and comes at a time when companies from across the globe are trying to cut reliance on Russian fuel.
As well as its fourth agreement in four weeks, the deal also marks Energy Transfer’s first Korean offtake customer.
Tom Mason, President of Energy Transfer LNG, said, “We are excited to announce SK Gas as our first Korean offtake customer. We look forward to a long-term relationship with SK Gas as it grows its domestic and international LNG business.”
“We are also pleased with the level of interest in our Lake Charles LNG export project from international customers who need LNG supply and from domestic natural gas producers who will benefit from expanding US exports of natural gas. These factors increase our confidence for taking FID by the end of 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).