Energy Transfer LP is nearing an agreement to sell liquefied natural gas from its planned Lake Charles export terminal to MidOcean Energy, Bloomberg writes.
The closing of the deal would solidify a heads of agreement between Energy Transfer and MidOcean, a subsidiary of investment firm EIG Global Energy Partners, announced in April. The agreement calls for MidOcean to commit to 30% of the Lake Charles construction costs and entitle it to receive 30% of the LNG production, or about 5 million metric tons a year.
The deal has not yet been fully completed, according to people close to the matter. EIG declined to comment, while Energy Transfer didn’t immediately respond to a request for comment.
MidOcean recently expanded its LNG footprint with a stake in Canada’s Petronas-backed terminal, adding to its projects in Peru and Australia. As U.S. and Qatari supply ramps up, analysts see global oversupply by 2027.
Read the full story. A subscription may be required.
