Energy Transfer Expands Lake Charles LNG Supply Deal with Chevron

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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy Transfer LP (Dallas, Texas) expanded its agreement to supply U.S. supermajor Chevron Corporation (Houston, Texas) with liquefied natural gas (LNG) from the proposed Lake Charles LNG export facility.

Energy Transfer agreed to supply an additional 1 million tons per annum (MTPA) of LNG over 20 years, which brings Chevron's total contracted capacity from the project to 3 MTPA, following an initial agreement for 2 MTPA that was signed late last year.

"This agreement marks a significant milestone in our growing partnership with Chevron and underscores the increasing global demand for reliable, long-term LNG supply," said Tom Mason, president of Energy Transfer LNG, in a press release. "With Energy Transfer's strategic infrastructure and connectivity to key production basins, Lake Charles LNG is poised to be a premier export facility, providing long-term value to our partners and the industry."

But Energy Transfer added its obligations under the agreement are subject to the company reaching a positive final investment decision (FID) "as well as the satisfaction of other conditions precedent."

The Lake Charles facility is designed to process up to 2.6 billion cubic feet per day (Bcf/d) of natural gas into LNG for exports. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

The supply agreement extension is not the only development that could potentially move Energy Transfer's Lake Charles project--which has been in the works since 2015 and initially struggled to secure enough supply agreements to move forward--one step closer to reaching an FID. In April, Energy Transfer reached a non-binding heads of agreement (HOA) with MidOcean Energy (Washington, D.C.) in which MidOcean would cover 30% of the construction costs in exchange for about 30% of total production of LNG.

For more information on this and the Lake Charles LNG project's development, see April 11, 2025, article - Energy Transfer Invites Partner to Help with Lake Charles LNG.

The U.S. has been the world leader in LNG exports since 2022.

The U.S. Department of Energy estimates exports will average 15 billion Bcf/d for this year, while IIR Energy recently noted new projects, and expansions to existing ones, could push the total export capacity above 30 billion Bcf/d. For more information on this, see June 25, 2025, article - U.S. LNG Export Potential Increasing.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).