Energy Transfer Stock Gains After Non-Binding Funding Deal For Louisiana LNG Project, Retail Optimism Grows

Under the deal, MidOcean would commit to financing 30% of the LNG project's construction costs and would be entitled to receive 30% of the LNG production.

Energy Transfer (ET) stock rose 1.3% in extended trading on Wednesday after the company signed a non-binding deal with Midocean Energy to develop the Lake Charles liquefied natural gas project in Louisiana.

Under the Heads of Agreement, MidOcean would commit to finance 30% of the construction costs of the LNG project and would be entitled to receive 30% of the LNG production, amounting to 5 million tonnes per annum (MTPA).

MidOcean, formed and managed by EIG Global Energy Partners, will have the option to arrange gas supply for its share of LNG production and commit to long-term gas transportation on Energy Transfer pipelines.

The Lake Charles facility, located on the Calcasieu ship channel, is converting Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG export facility.

The company has regulatory authorization to export up to 16.45 MTPA of LNG from the project. Energy Transfer expects to make a final investment decision in the fourth quarter of 2025. It has already signed LNG sale deals with the likes of Chevron and Shell.

U.S. has already emerged as the top LNG exporter, and the country’s export capacity is set to rise as several LNG projects are expected to come online during the rest of the decade.

Analysts have said that many countries may look to buy LNG from the U.S. to cut their trade deficits amid tariff concerns.

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (83/100) territory from ‘bullish’(74/100) a day ago, while retail chatter remained ‘extremely high.’

Energy Transfer shares have fallen 14.8% year-to-date (YTD).

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