Chevron Increases LNG Offtake from Lake Charles to 3 MMtpa

Chevron Corporation has expanded its long-term liquefied natural gas (LNG) commitment from Lake Charles LNG, agreeing to take an additional 1 million metric tons per annum (MMtpa) under a new agreement with Energy Transfer LP. This brings Chevron’s total contracted offtake from the Louisiana-based export facility to 3 MMtpa.

The updated supply agreement builds on an initial deal signed in December 2024 and will span a 20-year term. In a joint statement issued Wednesday, executives from both companies highlighted the deal as a reflection of both Chevron’s growing global gas portfolio and rising global demand for reliable LNG supply.

“This expanded LNG agreement reflects the growing strength of Chevron’s global gas business,” said Freeman Shaheen, President of Chevron Global Gas.

Tom Mason, President of Energy Transfer LNG, added,

“This agreement marks a significant milestone in our partnership with Chevron and underscores the increasing global demand for long-term LNG supply. With Energy Transfer’s strategic infrastructure and access to major production basins, Lake Charles LNG is positioned to become a premier export facility delivering long-term value to partners and the industry.”

The pricing structure under the agreement will include a fixed liquefaction fee and a gas supply component indexed to the Henry Hub benchmark.

In recent months, Lake Charles LNG has attracted additional offtake commitments, including a heads of agreement with MidOcean Energy for around 5 MMtpa and an offtake agreement with Kyushu Electric Power Co. for 1 MMtpa.

Planned as a conversion of an existing regasification terminal, the Lake Charles LNG project is designed for a total export capacity of 16.45 MMtpa. Energy Transfer has secured all necessary Federal Energy Regulatory Commission (FERC) approvals and, in September 2024, awarded the engineering, procurement, and construction (EPC) contract to a joint venture between KBR Inc. and Technip Energies NV.

However, despite previously obtaining an export license from the U.S. Department of Energy (DOE), Energy Transfer is currently seeking a deadline extension to 2031. This comes after the DOE, under the Biden administration, denied a 2023 request to push the original 2025 export commencement deadline to 2028.

A revised policy announced in April 2025 has since eased the DOE’s approach to extension requests. Under the updated guidelines, projects no longer need to be under construction or demonstrate external delays to qualify for an extension. Instead, the DOE will evaluate such requests on a case-by-case basis, noting the already extensive permitting process.

Energy Transfer filed its latest extension application on April 17, 2025, seeking to shift the project’s deadline to 2031. The application is currently undergoing a public comment period, which closes on July 2, according to the Federal Register.