Lake Charles LNG project agreement signed

March 26, 2019
Energy Transfer LP and Shell US LNG have moved toward a final investment decision on the conversion of Energy Transfer’s regasification terminal at Lake Charles, La., into a 16.45 million-tonne/year natural gas liquefaction plant.

Energy Transfer LP and Shell US LNG have moved toward a final investment decision on the conversion of Energy Transfer’s regasification terminal at Lake Charles, La., into a 16.45 million-tonne/year natural gas liquefaction plant (OGJ Online, June 30, 2017).

The companies signed a framework agreement designating Shell project lead before the companies reach FID and as construction manager and operator of Lake Charles LNG if the project is sanctioned. Energy Transfer will be site manager and project coordinator prior to FID.

The 50-50 project partners also said they will invite tenders from LNG engineering, procurement, and construction companies “in the weeks ahead.”

The FID will depend on the outcome of EPC bidding, project competitiveness, and market conditions, they said.