Eastern Utility Residing to Signal LNG Provide Deal From U.S. Lake Charles Project

Kyushu Electric Power has announced plans to secure a 20-year liquefied natural gas (LNG) supply agreement with Energy Transfer’s Lake Charles export terminal, contingent upon the project’s successful progression. This marks Kyushu Electric’s inaugural LNG procurement from the United States, aiming to diversify its energy sources amid a shifting global energy landscape, the company stated on Thursday, according to Reuters.

According to a company spokesperson, there has been no official request from the Japanese government for U.S. LNG imports. This comes at a time when several Asian nations, including South Korea and China, are actively seeking to increase their energy imports from the U.S. to reduce trade deficits and enhance energy security.

Earlier this month, Energy Transfer indicated that it is on track to make a final investment decision (FID) on its Lake Charles LNG export project in Louisiana by the end of 2025. The project involves converting an existing import and regasification facility into a fully operational LNG export terminal.

The Lake Charles project is fully permitted, leveraging existing infrastructure and benefiting from robust natural gas supplies connected via the Henry Hub and extensive pipeline networks operated by Energy Transfer. The company has already secured several offtake agreements and is in negotiations for the remaining volumes, with a final decision expected by year-end, according to co-CEO Thomas Long during the recent Q1 earnings call.

“We are making significant strides toward commercializing this project,” Long emphasized during the discussion with analysts.

Meanwhile, Asian countries are accelerating their efforts to secure U.S. energy commodities, driven by the desire to negotiate more favorable trade terms and diversify their energy portfolios amid fluctuating global markets.

By Tsvetana Paraskova for Oilprice.com

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Tsvetana Paraskova

With over ten years of experience, Tsvetana is a seasoned journalist contributing to Oilprice.com, with previous work for outlets like iNVEZZ and SeeNews, specializing in energy markets and commodities.

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