Proposed Project

LAKE CHARLES LNG EXPORT FACILITY

 

Energy Transfer LP and Shell US LNG, LLC have signed a Project Framework Agreement (PFA) that provides the framework to further develop a large-scale LNG export facility in Lake Charles, Louisiana toward a potential investment decision (FID). In addition, the parties have actively engaged with LNG Engineering, Procurement and Contracting (EPC) companies have issued an Invitation to Tender (ITT).

 

The Lake Charles LNG project brings together two leading entities – Shell as a worldwide leader in gas and LNG, and Energy Transfer as one of the largest pipeline operators in the U.S. – to progress what is expected to be a promising future investment option to monetize abundant, low-cost U.S. gas for export to global customers.

 

The PFA defines the commercial terms by which the two companies will work to progress an LNG export facility on the U.S. Gulf Coast. Shell will act as the Project Lead prior to the companies reaching a Final Investment Decision (FID), and if sanctioned, as construction manager and operator of the facility. Energy Transfer will act as Site Manager and Project Coordinator prior to FID. The two companies will determine the timing of the FID as the project develops based on the outcome of the EPC bidding process, an ongoing assessment of market conditions and overall project competitiveness.

 

The Lake Charles project is a 50/50 venture between Energy Transfer and Shell. The project, if sanctioned, would convert Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG export facility with a liquefaction capacity of 16.45 million tonnes per annum to export U. S. natural gas to global customers. 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.

 

 

Permit Ready Project

This new, permit-ready project will add 240 acres to Lake Charles LNG’s overall footprint that will allow for the development of a liquefaction and export facility.

 

The Federal Energy Regulatory Commission granted its approval in 2015, with authorization from the U.S. Department of Energy to export up to 2.19 billion cubic feet per day of natural gas (or 16.45 million metric tons of LNG per annum).

 

Liquefaction Process

By dropping the temperature to -260 degrees F, natural gas transforms into the liquid form that we call LNG. From gas to liquid, natural gas has a 600:1 volumetric ratio. This means we can put 600 times the amount of LNG in the same space that contained natural gas.

 

LNG has been safely produced for more than 50 years, and Lake Charles has played a key role from the beginning – in 1959, the first trans-Atlantic shipment of LNG originated from Lake Charles and was carried aboard the aptly named Methane Pioneer.

 

Economic Benefit for Louisiana

If built, the proposed project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational.

 

Environmentally Sensitive

The technology proposed for the project is designed to make it one of the most efficient and cleanest operating LNG facilities in the United States with air emissions expected to be well below both U.S. and Louisiana state limits. By using existing infrastructure and the proximity to existing pipeline infrastructure, including Energy Transfer’s vast pipeline network, the new project further mitigates environmental impacts from the minimal new construction.

 

About LNG

Liquefied natural gas (LNG) is natural gas that has been converted to liquid form. To make natural gas easier to store and transport, it is cooled and condensed into a liquid, for storage in specially designed facilities like the Lake Charles LNG facility.

 

Proposed Project Site

Existing  |  Proposed

Permit Ready Project

This new, permit-ready project will add 240 acres to Lake Charles LNG’s overall footprint that will allow for the development of a liquefaction and export facility.

 

The Federal Energy Regulatory Commission granted its approval in 2015, with authorization from the U.S. Department of Energy to export up to 2.19 billion cubic feet per day of natural gas (or 16.45 million metric tons of LNG per annum).

 

Liquefaction Process

By dropping the temperature to -260 degrees F, natural gas transforms into the liquid form that we call LNG. From gas to liquid, natural gas has a 600:1 compression ratio. This means we can put 600 times the amount of LNG in the same space that contained natural gas.

 

LNG has been safely produced for more than 50 years, and Lake Charles has played a key role from the beginning – in 1959, the first trans-Atlantic shipment of LNG originated from Lake Charles and was carried aboard the aptly named Methane Pioneer.

 

Economic Benefit for Louisiana

If built, the proposed project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational.

 

Environmentally Sensitive

The technology proposed for the project is designed to make it one of the most efficient and cleanest operating LNG facilities in the United States with air emissions expected to be well below both U.S. and Louisiana state limits. By using existing infrastructure and the proximity to existing pipeline infrastructure, including Energy Transfer’s vast pipeline network, the new project further mitigates environmental impacts from the minimal new construction.

 

About LNG

Liquefied natural gas (LNG) is natural gas that has been converted to liquid form. To make natural gas easier to store and transport, it is cooled and condensed into a liquid, for storage in specially designed facilities like the Lake Charles LNG facility.