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Released May 30, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Japan's Kyushu Electric Power Company (Fukuoka) signed its first-ever supply agreement to secure liquefied natural gas (LNG) from the United States after inking a deal with Energy Transfer LP (Dallas, Texas).
"Kyushu has been supportive of Lake Charles LNG for a long time and we appreciate their loyalty," Tom Mason, the president of Energy Transfer, said Thursday. "We are also pleased that Lake Charles LNG continues to make strong strides toward full commercialization."
Lake Charles is among the handful of facilities for exports of LNG emerging along the U.S Gulf Coast. Energy Transfer had worked to get Lake Charles moving since 2015, but struggled to secure enough supply agreements to move forward.
The company received a five-year extension from the Federal Energy Regulatory Commission (FERC) in 2019 to build the LNG export facility at Energy Transfer's existing regasification facility in Lake Charles.
A heads of agreement (HOA) deal reached in April means MidOcean Energy (Washington, D.C.) would cover 30% of the construction costs in exchange for about 30% of total production of LNG. The agreement with MidOcean, however, is non-binding.
If built, Lake Charles would be able 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.
Cheniere Energy Incorporated (Houston, Texas) delivered the inaugural batch of LNG sourced from U.S. natural gas from its Sabine Pass facility in 2016 and the United States has since established itself as the world leader in LNG exports.
Operators along the West Coast of North America, meanwhile, are getting into the game. Looking to tap the expanding markets in the Asia-Pacific, the United States is supporting an LNG facility in Alaska, while Canadian producers are eying export arteries to Asia for LNG from ports in British Columbia.
Shipping to Asia from the West Coast of North America would be shorter than routes from the U.S. Gulf Coast, though overall costs may be lower because the Gulf Coast is advantaged by a dense network of pipelines and natural gas fields that feed the terminals.
Lake Charles would be connected to Energy Transfer's existing Trunkline natural gas pipeline system, which draws on natural gas from the Haynesville, Permian and Appalachia shale basins.
U.S. supplies have supported energy security in the European Union since the Russian invasion of Ukraine in 2022 curtailed piped gas from Russia due to Western-backed sanctions. That market may be getting saturated, however, because of Europe's emphasis on renewable energy.
Japan, meanwhile, is heavily dependent on foreign imports of fossil fuels because it lacks resources of its own. The Organization for Economic Cooperation and Development estimates gross domestic product in Japan will expand by 1.1%, compared with 2.2% for the United States and 4.8% for China. Year-on-year to 2025, Japan's economy is expected to expand, while the same can't be said for the United States and China, the world's largest and second-largest economies, respectively.
The Japanese company's sale and purchase agreement (SPA) is for about 6% of the nameplate capacity from Lake Charles for a 20-year period.
"The obligations of Energy Transfer LNG under the SPA are subject to Energy Transfer LNG taking a positive final investment decision (FID) on the Lake Charles LNG project and satisfying other conditions precedent," the company explained.
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).
"Kyushu has been supportive of Lake Charles LNG for a long time and we appreciate their loyalty," Tom Mason, the president of Energy Transfer, said Thursday. "We are also pleased that Lake Charles LNG continues to make strong strides toward full commercialization."
Lake Charles is among the handful of facilities for exports of LNG emerging along the U.S Gulf Coast. Energy Transfer had worked to get Lake Charles moving since 2015, but struggled to secure enough supply agreements to move forward.
The company received a five-year extension from the Federal Energy Regulatory Commission (FERC) in 2019 to build the LNG export facility at Energy Transfer's existing regasification facility in Lake Charles.
A heads of agreement (HOA) deal reached in April means MidOcean Energy (Washington, D.C.) would cover 30% of the construction costs in exchange for about 30% of total production of LNG. The agreement with MidOcean, however, is non-binding.
If built, Lake Charles would be able 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.
Cheniere Energy Incorporated (Houston, Texas) delivered the inaugural batch of LNG sourced from U.S. natural gas from its Sabine Pass facility in 2016 and the United States has since established itself as the world leader in LNG exports.
Operators along the West Coast of North America, meanwhile, are getting into the game. Looking to tap the expanding markets in the Asia-Pacific, the United States is supporting an LNG facility in Alaska, while Canadian producers are eying export arteries to Asia for LNG from ports in British Columbia.
Shipping to Asia from the West Coast of North America would be shorter than routes from the U.S. Gulf Coast, though overall costs may be lower because the Gulf Coast is advantaged by a dense network of pipelines and natural gas fields that feed the terminals.
Lake Charles would be connected to Energy Transfer's existing Trunkline natural gas pipeline system, which draws on natural gas from the Haynesville, Permian and Appalachia shale basins.
U.S. supplies have supported energy security in the European Union since the Russian invasion of Ukraine in 2022 curtailed piped gas from Russia due to Western-backed sanctions. That market may be getting saturated, however, because of Europe's emphasis on renewable energy.
Japan, meanwhile, is heavily dependent on foreign imports of fossil fuels because it lacks resources of its own. The Organization for Economic Cooperation and Development estimates gross domestic product in Japan will expand by 1.1%, compared with 2.2% for the United States and 4.8% for China. Year-on-year to 2025, Japan's economy is expected to expand, while the same can't be said for the United States and China, the world's largest and second-largest economies, respectively.
The Japanese company's sale and purchase agreement (SPA) is for about 6% of the nameplate capacity from Lake Charles for a 20-year period.
"The obligations of Energy Transfer LNG under the SPA are subject to Energy Transfer LNG taking a positive final investment decision (FID) on the Lake Charles LNG project and satisfying other conditions precedent," the company explained.
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).
