Energy Transfer, China’s ENN sign 20-year supply deals for Lake Charles LNG (NYSE: ET)

Three Pipeline Reflecting Blue Sky

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Energy Transfer (NYSE: ET) signs two sale-and-purchase agreements with China’s ENN to supply a combined 2.7M metric tons of liquefied natural gas annually for 20 years, with first deliveries expected to begin as early as 2026.

Energy Transfer says the two SPAs mark a significant event in moving the Lake Charles LNG project towards a final investment decision by year-end.

ENN is one of the largest natural gas distributors in China, has an annual LNG distribution capacity of more than 10B cm and runs the first large-scale private LNG terminal in China.

“Strong cash flows, an inexpensive valuation, and major dividend increases in either 2022 or 2023 make Energy Transfer look like a solid investment,” Jonathan Weber writes in a bullish analysis posted recently on Seeking Alpha.

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