Energy Transfer (NYSE: ET) has long sought to convert its existing Lake Charles LNG import and regasification facility to a liquified natural gas (LNG) export terminal. It started working on that project about a decade ago. It has encountered several obstacles along the way, including turbulent market conditions and regulatory issues.

However, after many delays, the master limited partnership (MLP) is getting closer to making a positive Final Investment Decision on that project. It recently took another crucial step toward that outcome by bringing on Chevron (NYSE: CVX) as a customer for the proposed facility.

Energy Transfer wants to convert Lake Charles into an export facility with nearly 16.5 million tonnes per annum (MTPA) of LNG capacity. It has spent years securing the customers needed to commercialize the facility. It recently entered into a 20-year sale and purchase agreement with Chevron for 2 MTPA of capacity.

Securing Chevron as a customer is notable. The energy giant is an important player in the global LNG industry. It shows Chevron's confidence in the project, which Energy Transfer believes is among the most compelling on the U.S. Gulf Coast. The deal would enable Chevron to supply the world with more low-cost, lower-carbon energy.

Chevron adds to the growing number of commercial customers backing the project. In late 2023, the company had secured contracts for nearly 8 MTPA of capacity. Other notable customers include Shell, its former joint venture partner on the project, along with Expand Energy, EQT, and several international gas customers. Analysts estimate that Energy Transfer will need to secure customer contracts for about 12 MTPA of capacity to approve the project.

Regulatory issues have been a major factor affecting the company's ability to secure additional customers over the past year. The Department of Energy declined to approve an extension of the company's export permit. On top of that, the Biden administration paused approving new LNG export terminals. However, with the more fossil fuel-friendly Trump administration taking over in January, Energy Transfer should be able to obtain the necessary approvals to move forward with this project.