Energy Transfer Terminates Offtake Agreements with Some Customers of Suspended Lake Charles LNG Project

Energy Transfer has terminated offtake agreements with some customers of its suspended Lake Charles liquefied natural gas project in Louisiana, according to a filing with the U.S. Securities and Exchange Commission on Thursday.

Here are some details:

* “Several LNG offtake agreements have been terminated based on the nonsatisfaction of the condition related to making a final investment decision by the date specified in the applicable LNG offtake agreement,” Energy Transfer said in a 10K filing.29dk2902l

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* Energy Transfer in December said it was suspending the development of the facility.

* Lake Charles LNG was projected to have a liquefaction capacity of 16.45 million metric tons per annum, with customers such as U.S. oil producer Chevron that had committed to buying 3 mtpa.

* Energy Transfer said sales and purchase agreements not tied to it making a final investment decision remain intact, and it is prepared to include them as part of any sale of the project.

* Energy Transfer is not prepared to fund any part of the project but would be interested in providing it with gas, the company said in the filing.

(Reporting by Curtis Williams in Houston; Editing by Nathan Crooks, Rod Nickel)