Energy Transfer seeks FERC extension for Lake Charles LNG export terminal

In May 2022, FERC granted Lake Charles LNG and the accompanying pipeline the current extension of the deadline to complete construction and make the project available for service until December 2028.

“In order to reach a final investment decision (FID) for the project, Lake Charles LNG and Trunkline respectfully request a three-year extension of time until December 31, 2031 to complete construction of the project and make it available for service,” Lake Charles LNG said in a FERC filing dated April 11.

$398 million spent on the project

Since May 2022, Lake Charles LNG and the project sponsor, Energy Transfer, have in made “significant and concrete” progress towards execution of a commercially viable level of long-term commercial agreements with LNG offtake customers for the Project and reaching FID.

Lake Charles LNG and Energy Transfer also have undertaken, and continue to undertake, “numerous project construction-related activities, and, to date approximately $398 million has been spent on the development of the project, including approximately $71 million since 2022.”

“Because it is a precondition of FID that all Commission authorizations remain in full force and effect during construction of the project, it is necessary to have a three-year extension until December 31, 2031 to ensure that the project is in service before the expiration of the deadline in the authorization order,” the compny said.

Without such an extension, the project likely would not be able to get to FID, Lake Charles LNG said.

Lake Charles LNG requests that FERC grants this extension by June 16, 2025.

10 mtpa of LNG

Energy Transfer’s Lake Charles LNG project seeks to convert its existing regasification terminal to an LNG export facility.

It has a proposed liquefaction capacity of 16.45 mtpa and includes three trains and also modifications to the Trunkline Gas pipeline.

Energy Transfer is making “significant progress” in the commercialization of the project and to date has executed long-term commercial agreements with LNG offtake customers for about 10 mpta of LNG, which is 60 percent of the FERC-approved LNG production capacity of the project, for terms of 18-25 years, Lake Charles LNG said.

Also, MidOcean Energy, the LNG unit of US-based energy investor EIG, just signed a heads of agreement with Energy Transfer to jointly develop the Lake Charles LNG export facility.

Under the HoA, MidOcean would commit to funding 30 percent of the construction costs and be entitled to receive 30 percent of the LNG production, about 5 mtmpa, from Lake Charles LNG.

In September last year, Energy Transfer also executed an EPC agreement with a joint venture of France’s Technip Energies and US-based KBR.

In February this year, Energy Transfer executives said they hope to make FID to build the Lake Charles LNG export facility in the fourth quarter of 2025.

Besides this extension, Energy Transfer also needs to secure approval for non-FTA LNG exports.

Last year, Energy Transfer’s unit Lake Charles Exports asked the US DOE for expedited action on its pending application for non-FTA LNG exports from export facility.

In the meantime, US President Donald Trump lifted a moratorium by the former Biden administration on non-FTA LNG export permits last month.

The US DOE recently issued a conditional non-FTA approval to Venture Global LNG’s proposed CP2 LNG project in Louisiana.