ET and Shell release EPC tender for Lake Charles project in Louisiana

Energy Transfer (ET) and Shell US LNG have issued a tender package to engineering, procurement and construction (EPC) contractors to submit final commercial bids for the proposed Lake Charles LNG liquefaction project in Louisiana, US.

The project is a 50:50 joint venture (JV) between the two companies and would convert ET’s existing Lake Charles LNG import and regasification terminal to an LNG export facility if sanctioned.

Spread across 400 acres along the Gulf coast near Lake Charles, the project is expected to add LNG liquefaction capacity of 16.45Mtpa for export to global markets.

Energy Transfer LNG president Tom Mason said: “This is an important step in the continued development of this LNG project with Shell.

“This project capitalises on repurposing existing brownfield regas assets to achieve cost savings in the construction of the liquefaction facility.

“The project will also benefit from the unique strength of Energy Transfer as a leading natural gas pipeline operator with extensive connectivity to the Lake Charles facility.”

ET noted that the commercial bids for the project are expected to be received in the second quarter of next year.

The commercial tender expands on the invitation to tender (ITT) announced in May, which focused on the project’s technical scope.

The ITT specially focused on the contractors’ verification of the engineering and design of the planned liquefaction project, said ET.

According to the company, the tender invites the EPC contractors to develop a comprehensive bid, which also requires their submission of a fully developed execution plan and completion schedule of the project.

Shell Lake Charles vice-president Frederic Phipps said: “The commercial tender represents another important milestone in our phased approach to developing a credible and safe LNG project for Shell and Energy Transfer.”

Until reaching a final investment decision (FID), Shell will serve as the project lead and act as construction manager and operator of the facility upon sanction.

Meanwhile, ET will act as site manager and project coordinator before FID.