Energy Transfer (ET) Expands Chevron’s Partnership with New LNG Supply Deal

Energy Transfer LP (NYSE:ET) is one of Goldman Sachs’ top energy stock picks. On June 25, the company confirmed the signing of an incremental Sale and Purchase Agreement with Chevron USA through its subsidiary Energy Transfer LNG Export.

Energy Transfer (ET) Expands Chevron’s Partnership with New LNG Supply Deal

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The 20-year sale and purchase agreement for 1.0 million tons per annum (mtpa) is set to increase Chevron’s total contracted volume to 3.0 mtpa, along with Energy Transfer’s total contracted volume. The LNG is to be supplied on a free-on-board (FOB) basis. The Purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark.

The new agreement affirms the growing partnership between Energy Transfer and Chevron. It also affirms the ever-increasing demand for reliable and long-term LNG supply. The deal also underscores Energy Transfer’s momentum in securing long-term LNG commitment. The company has already signed a Heads of Agreement with MidOcean Energy and a SPA agreement with Kyushu Electric Power Company for 1.0 million tonnes per annum (mtpa).

Energy Transfer LP (NYSE:ET) is an energy company focused on the midstream sector, which involves transporting, storing, and processing natural gas, crude oil, natural gas liquids (NGLs), and refined products. It operates a vast network of pipelines and facilities across the United States.

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