Energy Transfer LP and Shell US LNG signed a Project Framework Agreement (PFA) to develop a large scale LNG export facility in Lake Charles, Louisiana toward a potential final investment decision (FID). If built, the facility 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 abundant, low-cost natural gas to global customers from the Gulf Coast.
The companies have engaged with LNG Engineering, Procurement and Contracting (EPC) companies with a plan to issue an Invitation to Tender (ITT) in the weeks ahead.
Prior to FID, Shell will act as the Project Lead and nergy Transfer will act as Site Manager and Project Coordinator. If sanctioned, Shell will be the construction manager and facility operator.
“Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020’s,” said Frederic Phipps, Shell’s Vice President, Lake Charles LNG. “Our partnership with Energy Transfer plays to our respective strengths. Together, we are expertly positioned to advance a project that could provide customers in Asia, Europe and the Americas with cleaner, reliable energy for decades to come.”
If built, the project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational.
