Chevron U.S.A. Inc (Chevron) and Energy Transfer LNG Export, LLC (Energy Transfer) have entered into a 20-year LNG sale and purchase agreement under which Chevron will offtake two million tonnes (mtpa) of LNG per annum from Energy Transfer at the Lake Charles LNG export facility, which is to be constructed on the existing brownfield regasification facility site and will capitalize on four existing LNG storage tanks, two deep water berths, and other LNG infrastructure. The LNG will be supplied on a free-on-board basis (FOB), and the purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark.
Latham & Watkins represented Chevron in the transaction with a Houston-based team led by partner Chris Peponis and counsel Brian Hintze, with associate Diego GuimarĂŁes-BlandĂłn.
