SCT&E signs agreement to support $6.9bn LNG export terminal in Louisiana, US

US-based SCT&E LNG has signed an agreement to support its future $6.9bn liquefied natural gas (LNG) export terminal to be built on its 246 acre site located on Monkey Island in Cameron Parish, Louisiana.

The company signed a memorandum of understanding (MOU) with a natural gas supplier in May last year for a 20-year fixed price on natural gas from commencement of operations of the facility.

Over the last several months, SCT&E LNG has been in talks with the supplier to convert the MoU into a gas supply agreement.

SCT&E LNG chairman and CEO Greg Michaels said: "I am very pleased to announce we have successfully completed the negotiations and now have a contractual method to offer this unique natural gas supply structure to our LNG offtakers.

"Together with our upstream supplier, we have essentially created a 25-year hedge on natural gas for our customers, and the LNG offtake community is responding positively."

The company’s export project is scheduled to produce a total of 12 million tonnes per annum (mtpa) of LNG and shipments are set to begin in 2022.

Strategically located on Louisiana’s Calcasieu Ship Channel, the terminal sits about 2.5 miles from the Gulf of Mexico.

SCT&E LNG received Order No. 3566 from the Department of Energy on 15 December 2014 granting a authorisation for 30 years to export about 1.60 billion cubic feet per day (bcf/d) of natural gas from the proposed facilities to countries with whom the US has a free trade agreement.

To date, SCT&E LNG has signed four offtake MoU’s for a total of 4.7mtpa of LNG, more than a third of its proposed facility’s total capacity.