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Latham & Watkins Advises ENN Energy on Two Long-Term LNG Agreements With Energy Transfer

April 6, 2022
Cross-border team represents one of the largest independent energy companies in China.

Latham & Watkins has advised ENN Energy on the negotiation of two sale and purchase agreements (SPAs) with Energy Transfer LNG Export LLC (ET LNG), a subsidiary of Energy Transfer LP, one of the largest and most diversified midstream energy companies in North America, for the supply of liquefied natural gas (LNG) from a new liquefaction and export facility that Energy Transfer is developing in Lake Charles, Louisiana.

Under the two SPAs, ET LNG is expected to supply 1.8 million tonnes of LNG to ENN Natural Gas, and 0.9 million tonnes of LNG to ENN Energy, per annum on a free-on-board basis. The purchase price is indexed to the Henry Hub benchmark plus a fixed liquefaction charge. Both SPAs are for a term of 20 years, and first deliveries are expected to commence as early as 2026. The SPAs will become fully effective upon the satisfaction of the conditions precedent by ET LNG, including reaching FID.

The cross-border Latham team was led by Hong Kong partner David Blumental and London partner JP Sweny, with London associate Ali Stopford and Singapore associate Carolyn Wong.