Energy Transfer Secures 20-Year LNG Deal with Kyushu Electric

Energy Transfer LP has signed a landmark 20-year LNG Sale and Purchase Agreement with Japan's Kyushu Electric Power Company, marking Kyushu's first long-term LNG contract from the United States. Under the agreement, Energy Transfer LNG Export will supply up to 1 million tonnes of LNG annually from its Lake Charles LNG project, contingent on a positive final investment decision and other conditions. The contract, structured with a fixed liquefaction charge and a gas supply component indexed to Henry Hub, is on free-on-board terms with no destination restrictions, allowing Kyushu flexibility in managing LNG supply. This deal is strategically important for diversifying Kyushu's LNG procurement sources and enhancing energy supply stability amid rising demand in Asia. Energy Transfer's Lake Charles project benefits from existing infrastructure and a direct connection to major U.S. natural gas basins, positioning it as a key player in the U.S.-Asia energy corridor. The agreement reflects broader trends in energy security and supply chain resilience, though potential regulatory approvals and project timelines remain risks to monitor.