Energy Transfer’s Lake Charles LNG secures DOE extension

In April this year, Lake Charles LNG Export filed with DOE an application to extend the start of
operations deadline by amending both of its non-FTA export orders from December 16, 2025, to December 31, 2031.

The US FERC previously extended the original construction and in-service deadline for the project three times, with the latest extension in May this year.

“DOE finds that Lake Charles LNG Export has demonstrated good cause for the requested extension to the export commencement deadline in its non-FTA orders,” the regulator said in its order dated August 22.

Lake Charles LNG now has until December 31, 2031, to commence exports from the Lake Charles terminal to non-FTA countries.

Additionally, DOE amended the authorizations to provide “three additional years for Lake Charles LNG Export to export the approved non-FTA volume of LNG, a combined total of 851 Bcf/yr of natural gas, beyond the export term for each authorization ending on December 31, 2050 (make-up period).”

“During this make-up period, which will extend through December 31, 2053, Lake Charles LNG Export will be permitted to export any approved volume of LNG that it is unable to export during the original export term (the make-up volume),” DOE said.

Lake Charles LNG deals

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.

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

Earlier this year, Lake Charles LNG signed a heads of agreement with MidOcean Energy, the LNG unit of US-based energy investor EIG, which provides a non-binding framework for the joint development of the LNG project.

Pursuant to the HoA, MidOcean would commit to fund 30 percent of the construction cost and be entitled to 30 percent of the LNG production, or about five mtpa.

In addition, Lake Charles signed twenty-year SPAs with Kyushu Electric Power and Chevron.

Energy Transfer’s management recently said that the company is in advanced discussions for the sale of the remaining offtake volumes from its proposed LNG export facility.

“On the marketing side, we’re in advanced discussions with multiple parties for our remaining capacity and are getting close to our target of 15 million metric tons per annum,” Energy Transfer’s co-CEO, Tom Long, said during the company’s earnings call.

“Some of our potential offtake customers are also interested in equity in the project, which if concluded would reduce our external financing requirements,” he said.

“As we have previously stated, we expect to sell equity in the project to reduce Energy Transfer’s ownership to approximately 25 percent,” Long said.