Energy Transfer signs 20-year LNG supply deal with Shell [Reuters]
Energy Transfer LP Common Units (ET)
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Source: Reuters
(Reuters) -Pipeline operator Energy Transfer LP will supply 2.1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to Shell Plc for 20 years under a deal announced on Wednesday. The supply agreement is Energy Transfer's sixth in five months and comes after Western sanctions on exports from key producer Russia squeezed an already-tight market. “This agreement will enable us to further meet the increasing demand for LNG and positions Shell as a leading buyer of LNG from the US – which in 2021 became the world's biggest LNG supplier,” Steve Hill, senior executive at Shell, said in a statement. The gas will be supplied from Energy Transfer's Lake Charles project in Louisiana, with deliveries expected to start as early as 2026. With the deal, the amount of LNG contracted from the project has increased to nearly 8 mtpa. Reporting by Rithika Krishna in Bengaluru; Editing by Aditya Soni
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