More time for LNG terminal to kick off exports in Louisiana

Energy Transfer LNG Export, a subsidiary of U.S.-based Energy Transfer, has been given additional time to start liquefied natural gas (LNG) exports to non-free trade agreement (non-FTA) countries from its proposed export project on Louisiana’s Gulf Coast.

An amendment order was signed by Chris Wright, U.S. Secretary of Energy, granting additional time for Energy Transfer’s Lake Charles LNG Export Company to commence exports of LNG to non-free trade agreement countries from the Lake Charles LNG project in Lake Charles, Louisiana.

Upon full construction, the project will be capable of exporting up to 2.33 billion cubic feet per day (bcf/d) of natural gas as LNG. Lake Charles LNG was originally configured as an LNG import terminal but is now being developed as an LNG export terminal. The developer recently signed several long-term LNG offtake contracts, including agreements with Chevron and Kyushu Electric Power Company.

Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, underlined: “Granting this commencement extension furthers the Trump Administration’s priority of unleashing American Energy, a radical shift from the last administration, whose actions undermined the progress of Lake Charles LNG for years.”

According to the Department of Energy (DOE), the United States is the largest global producer and exporter of natural gas, with eight large-scale LNG projects currently operating in the U.S. and several additional projects either expanding or under construction.

Secretary Wright highlighted: “On the heels of President Trump’s historic trade negotiations, demand for secure, reliable American LNG is surging. The Department of Energy is ensuring companies like Lake Charles LNG are prepared to meet this global demand while advancing commonsense policies that support American jobs and lower energy costs here at home.”

Under President Donald Trump’s reign, the Department of Energy has greenlighted applications from projects that will export more than 13.8 bcf/d of natural gas as LNG, a volume said to be greater than the world’s second-largest LNG-exporting nation is exporting today. 

Lake Charles LNG is poised to benefit from its direct connection to Energy Transfer’s existing trunkline pipeline system, which provides connections to multiple intrastate and interstate pipelines that allow access to multiple natural gas-producing basins, including the Haynesville, Permian, and Marcellus Shale. The latest multi-year LNG offtake deal was inked with Chevron.

Technip Energies and KBR secured an engineering, procurement, manufacturing, and construction (EPFC) contract a few months ago to repurpose the Lake Charles LNG project into an export terminal with a capacity of 16.45 million tons per annum (mtpa), which requires the delivery of three liquefaction trains and modifications to existing storage and dock facilities.

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