June 25 (Reuters) - Pipeline operator Energy Transfer ( ET )

said on Wednesday it will supply U.S. oil major Chevron ( CVX )

with an additional 1 million tonnes per annum (mtpa) of

liquefied natural gas from its Lake Charles LNG export facility.

The 20-year agreement brings the total volume of LNG supply

contracted by Chevron ( CVX ) to 3 mtpa, following the initial 2 mtpa

agreement signed last year.

Commercial activity within the sector has gained

momentum in the U.S., the world's largest LNG exporter, after

President Donald Trump

lifted a moratorium

on new LNG export permits soon after taking office in

January.

The Lake Charles project was among the first facilities

to be impacted after the Biden administration refused to grant

an extension to Energy Transfer's ( ET ) export license to countries

other than those that have free-trade agreements with the U.S.

The company is now

close to receiving a go-ahead

on the Lake Charles facility.

Energy Transfer ( ET ) said it will supply the super-chilled gas to

Chevron ( CVX ) on a free-on-board basis, adding that the purchase price

will consist of a fixed liquefaction charge and a gas supply

component indexed to the Henry Hub benchmark.

The agreement is subject to Energy Transfer ( ET ) reaching a

positive final decision on the Lake Charles project.

LNG developers typically use sales and purchase

agreements when approaching banks for loans to develop

production facilities.

The Chevron ( CVX ) agreement builds on Energy Transfer's ( ET ) efforts in

securing long-term contracts for the Lake Charles facility.

The pipeline operator inked a deal with Japan's Kyushu

Electric Power ( KYSEF ) for 1 mtpa of LNG in May. In April, it

entered a nonbinding agreement with MidOcean Energy for 5 mtpa.

Shares of both Chevron ( CVX ) and Energy Transfer ( ET ) rose

marginally in premarket trading.