TOKYO, May 29 (Reuters) - Japan's Kyushu Electric Power ( KYSEF )

said on Thursday it will sign a 20-year purchase

contract with U.S. energy firm Energy Transfer ( ET ) to buy up

to 1 million metric tons of liquefied natural gas a year from

the Lake Charles LNG project.

It marks the Japanese utility's first long-term LNG purchase

deal from the United States and is expected to diversify the

company's procurement sources and contribute to stable

procurement, the company said in a statement.

The contract is on free-on-board (FOB) terms with no

destination restrictions, allowing the utility to procure LNG

flexibly in response to fluctuations in electricity supply and

demand, such as adjusting receipt timing at its discretion or

selling to other companies when demand is low.

Earlier this month, Energy Transfer ( ET ) said it was nearing a

go-ahead on its Lake Charles LNG project after an unnamed

Japanese company agreed to buy 1 million metric tonnes of LNG

from the proposed export facility.