Energy Transfer Bolsters LNG Leadership with Chevron Deal

Another Promise of the Safety, Cleanliness, and Reliability of LNG

The global demand for reliable, clean energy is surging, and Liquefied Natural Gas (LNG) is proving to be a cornerstone of this shift. Energy Transfer LP’s latest announcement that its subsidiary, Energy Transfer LNG Export, LLC, has secured a 20-year Sale and Purchase Agreement (SPA) with Chevron U.S.A. Inc. for an additional 1.0 million tonnes per annum (mtpa) of LNG from its Lake Charles LNG export facility in Louisiana is a strategic milestone. This agreement builds on a December 2024 deal, bringing Chevron’s total committed volume to 3.0 mtpa. The deal highlights the growing confidence in LNG’s safety, reliability, and cleanliness as a critical energy source for the global markets.

Why LNG Matters

LNG is transforming the energy landscape. By cooling natural gas to a liquid state, LNG can be safely stored and transported worldwide. LNG’s reliability ensures consistent energy supply, critical for grid stability and industrial operations. Safety is paramount in the LNG sector, with facilities like those at the Lake Charles LNG site adhering to rigorous standards, leveraging advanced technology to minimize risks.

This Chevron agreement comes at a time when global energy needs are soaring. Europe is replacing dirtier fuels to enhance energy security, while Asia’s industrial growth fuels demand in countries like China and Japan. The U.S., with its abundant natural gas reserves, is a leading LNG exporter, and the Lake Charles LNG project is a key player in meeting this demand.

The Chevron Partnership

Chevron’s commitment to an additional 1.0 mtpa over 20 years underscores LNG’s long-term value. The Lake Charles facility, set to become one of the U.S.’s largest LNG export terminals, will leverage existing infrastructure to deliver millions of tonnes of LNG annually. This deal not only strengthens Energy Transfer’s position as a trusted supplier, but also solidifies the U.S.’s role in the global LNG market, competing with nations like Qatar and Australia.

Project Update: Lake Charles LNG Nears Final Investment Decision

The Lake Charles LNG project is making significant strides toward its goal of a final investment decision (FID) by the end of 2025. With a planned capacity of 16.45 mtpa, the project involves converting an existing regasification terminal into a world-class export facility, a brownfield approach that reduces costs compared to new builds. Energy Transfer has secured over 10.4 mtpa in committed offtake agreements, including deals with Chevron (3.0 mtpa), Shell (2.1 mtpa), Gunvor Singapore (2.0 mtpa), China Gas Holdings (0.7 mtpa), Kyushu Electric Power Company (1.0 mtpa), a German utility (1.0 mtpa), and an international energy company (1.0 mtpa). The company aims to reach 15 mtpa in commitments before proceeding with FID.

In April 2025, Energy Transfer signed a non-binding heads of agreement with MidOcean Energy, where MidOcean will fund 30% of construction costs in exchange for 30% of LNG production (approximately 5.0 mtpa). An engineering, procurement, and construction contract was awarded in September 2024 to KTJV, a joint venture of KBR and Technip Energies, ensuring progress toward construction readiness. The project has faced regulatory hurdles, notably under the Biden administration’s LNG export license moratorium, but the Trump administration’s reversal in January 2025 has cleared the path, though Energy Transfer awaits an extension for non-Free Trade Agreement exports.

The facility will capitalize on existing infrastructure, including 430,000 cubic meters of LNG storage, two deep-water docks, and connectivity to Energy Transfer’s Trunkline pipeline system, which accesses major gas basins like Haynesville and Permian. The project is expected to create up to 4,000 jobs during construction and 200 permanent positions, boosting Louisiana’s economy while maintaining a low environmental footprint through efficient technology and minimal new construction.

Why LNG Stands Out

LNG’s strength lies in its safety, reliability, and cleanliness. Compared to coal, LNG produces significantly lower emissions, and its transport is managed with stringent safety protocols. Facilities like Lake Charles use cutting-edge technology to ensure secure operations, from liquefaction to global shipping. For industries and power grids, LNG’s ability to deliver steady energy is vital, especially in regions where disruptions could have severe economic impacts.

The project also drives economic growth. It will create thousands of jobs in Louisiana and strengthen U.S. energy exports, contributing to national trade balances. With global LNG demand projected to rise by 20% by 2030, per the International Energy Agency, Lake Charles is well-positioned to meet this need.

Looking Ahead

Energy Transfer’s expanded partnership with Chevron, combined with its progress toward FID, signals a bright future for the Lake Charles LNG project. As the facility moves closer to commercialization, it reinforces LNG’s role as a safe, reliable, and clean energy source for decades to come. Energy Transfer is not just building a facility… it’s shaping the future of global energy supply!

Disclaimer: This article reflects the views of the author and is not a financial endorsement or critique of Energy Transfer or Chevron. For more details, see Energy Transfer’s official press releases and investor materials.