Energy Transfer LP is proposing a large-scale LNG export facility in Lake Charles, Louisiana. The project would convert Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG export facility, which provides a cost advantage over other proposed LNG projects on the Gulf Coast.
Energy Transfer announced it would take over the development of the Lake Charles LNG export project on March 30, 2020, following Shell’s announcement that is has decided not to proceed with an equity investment in the project. Shell advised Energy Transfer that its decision was made in light of current market conditions. Energy Transfer will evaluate various alternatives to advance the project, including the possibility of bringing in one or more equity partners and reducing the size of the project from three trains (16.45 mtpa of LNG capacity) to two trains (11.0 mtpa).
In December 2019, a comprehensive commercial tender package was issued to engineering, procurement and construction (EPC) contractors to submit final commercial bids.
The project is fully permitted, uses existing infrastructure and benefits from abundant natural gas supply and proximity to major pipeline infrastructure, including Energy Transfer’s vast pipeline network. If built, the project is estimated to create up to 5,000 jobs during construction and 200 full-time positions when fully operational.