Energy Transfer LP is suspending development of its 16.45 million tonne/year (tpy) Lake Charles LNG plant to focus on allocating capital to its backlog of natural gas pipeline projects that the company believes provides superior risk-return profiles.
Energy Transfer LPis suspending development of its 16.45 million tonne/year (tpy) Lake Charles LNG plant to focus on allocating capital to its backlog of natural gas pipeline projects that the company believes provides superior risk-return profiles.
Among these projects is subsidiary Transwestern Pipeline Co. LLC’s planned Desert Southwest expansion. Initially proposed to move 1.5 bcfd of gas from various Permian basin receipt points to markets in New Mexico and Arizona, Energy Transfer has expanded the pipeline’s proposed capacity to 2.3 bcfd and will now use 48-in. OD pipe instead of 42-in. OD.
The capacity expansion was driven by results of an open season concluded Oct. 25, 2025. Energy Transfer expects to complete the project fourth-quarter 2029.
Company management said it remains open to discussions with third parties who may have an interest in developing the LNG plant. Initial design included three 5.5-million tpy trains. The US Federal Energy Regulatory Commission approved the project in 2015.
Chris brings 32 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 20 of them in the midstream and transportation sectors.
