Lake Charles LNG; Source: Energy Transfer

US LNG import terminal’s transformation into large export facilities put on ice

Business & Finance

Energy Transfer LNG Export, a subsidiary of U.S.-based Energy Transfer, has shelved the development of a liquefied natural gas (LNG) export project on Louisiana’s Gulf Coast.

Lake Charles LNG; Source: Energy Transfer
Lake Charles LNG; Source: Energy Transfer

Energy Transfer has revealed that it is suspending development of the Lake Charles LNG project to focus on allocating capital to its significant backlog of natural gas pipeline infrastructure projects, which the firm believes provides superior risk/return profiles.

The company’s management has determined that its continued development of the project is not warranted but remains open to discussions with third parties that may have an interest in developing the project. The Lake Charles LNG import and regasification terminal is being converted into an LNG export terminal.

The new LNG export facility will have a capacity of 16.45 million tons per annum (mtpa), covering three modular LNG trains with a capacity of 5.5 mtpa. 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. 

Technip Energies and KBR won an engineering, procurement, manufacturing, and construction (EPFC) contract a few months ago to repurpose the Lake Charles LNG project into an export terminal.

The suspension comes months after an amendment order was granted by Chris Wright, U.S. Secretary of Energy, for additional time to begin LNG exports from the project to non-free trade agreement (non-FTA) countries.

The U.S. player’s strategic network spans 44 states with assets in all the major U.S. production basins and core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation.

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