Earlier this week, Energy Transfer and Shell announced that a comprehensive commercial tender package has been issued to engineering, procurement and construction (EPC) contractors to submit final commercial bids for the proposed Lake Charles LNG liquefaction project under consideration in Lake Charles, LA. The project, if sanctioned by Energy Transfer and Shell, would modify Energy Transfer’s existing LNG import facility to add LNG liquefaction capacity of 16.45 million tonnes per annum (MTPA) for export to global markets. The commercial bids are expected to be received in the second quarter of 2020. Both Shell and Energy Transfer have expressed their enthusiasm for the significant investment:
“This is an important step in the continued development of this LNG project with Shell,” said Tom Mason, President of Energy Transfer LNG. “This project capitalizes 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.”
“The commercial tender represents another important milestone in our phased approach to developing a credible and safe LNG project for Shell and Energy Transfer,” said Frederic Phipps, Shell, Vice President of Lake Charles. “We look forward to continue leveraging our global experience in LNG development and build on our positive collaboration with EPC contractors to drive value and competitiveness throughout the bid process.”
Lake Charles LNG is the latest in a flurry of major investment in LNG export facilities in Texas and Louisiana. With the United States producing a record amount of natural gas, it is key that we continue to expand our nation’s pipeline network and invest in LNG export terminals to transport energy to our allies around the globe. Louisiana is playing a critical role in decreasing our allies’ reliance on energy sourced from volatile nations, like Russia.
Lake Charles LNG is fully permitted, uses existing infrastructure and benefits from direct natural gas supply via Energy Transfer’s vast pipeline network. This week’s announcement brings Lake Charles LNG one step closer to shipping domestically-produced LNG to our allies in Europe and Asia, and Louisianians for Energy looks forward to the continued investment in our state’s thriving energy industry.