FERC approves $12.3bn Lake Charles LNG natural gas project in US

The Federal Energy Regulatory Commission (FERC) in the US has approved the $12.3bn Lake Charles LNG natural gas export project of Energy Transfer and the UK-based BG Group.

The approval has been secured to construct and operate a natural gas liquefaction and export facility in Lake Charles, Louisiana.

Energy Transfer and BG Group have selected new technology for the project, which includes aero derivative turbines with selective catalytic reduction.

The new technology will enable the project to generate less air emissions and would be below US and state limits.

BG Group America asset general manager Jason Klein said: "Lake Charles LNG has the potential to create several thousand jobs during construction and if fully operational could result in approximately 250 long-term operational positions – sustainable jobs for current and future generations."

Final investment decisions from both the companies are expected to be made in 2016 and construction will start immediately. First LNG exports are anticipated after four years.

The Lake Charles LNG project will come up on a brownfield site that has LNG tanks and other existing infrastructure, as well as access to a gas market.

Energy Transfer will provide pipeline transportation services to the plant.

BG Group will manage construction and will be responsible for the LNG offtake from the facility upon completion.

The companies secured the final environmental impact statement (FEIS) from the US regulator in August 2015 for the project which includes three trains producing 15 million tonnes per annum.

---

Image: Final investment decisions for the Lake Charles LNG project will be made in 2016. Photo: © BG Group