Energy Transfer to take up joint study of Lake Charles LNG Liquefaction Project

Energy Transfer Partners (ETP) subsidiary Lake Charles LNG Export Company has signed a memorandum of understanding (MoU) with Korea Gas (Kogas) to explore possibilities regarding joint participation in the Lake Charles LNG liquefaction project in Los Angeles, US. 

BG LNG Services, a subsidiary of Shell, is also confirmed to be taking part in the project study.

The Lake Charles LNG facility is owned 60% by Energy Transfer Equity (ETE) and 40% by ETP.

ETP notes that the initiative will utilise its existing regasification import facility to assist the liquefaction project's development.

Works to be undertaken by the parties include studying the economics of the project, as well as developing the engineering, procurement and construction agreement.

The companies will also evaluate the viability of sourcing and marketing domestically produced natural gas for exportation as LNG.

The 440-acre project site is located close to Henry Hub and has access to several natural gas production areas in the US.

It is also connected to ETP’s trunkline gas pipeline system, which involves a more than 2,200mi natural gas pipeline network, interconnecting with more than 12 interstate and intrastate pipelines.

ETP owns and operates a portfolio of natural gas midstream, intrastate and interstate transportation and storage assets, including crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets, as well as NGL fractionation.