US DOE denies Lake Charles LNG’s rehearing request

The US DOE has denied a rehearing request by Energy Transfer’s Lake Charles LNG regarding its proposed LNG export facility in Louisiana.

The department said in a filling dated June 21 it has denied Lake Charles LNG’s rehearing request for the second extension of deadline to commence exports of LNG from the proposed project to non-free trade countries.

Lake Charles LNG’s existing authorizations, including its extended deadline to start non-FTA exports under both orders by December 16, 2025, remain in effect.

In addition, should Lake Charles LNG Export be unable to commence exports by December 16, 2025, “it is welcome to submit a new non-FTA application, which would be evaluated under current policies with the most recent market information,” the DOE said.

Contracts signed for about half of planned volumes

In April this year, the department declined the request to extend the deadline to start exports by December 2028.

The department said that Lake Charles LNG has not shown “good cause” for an “unprecedented” second extension.

After that, Energy Transfer’s co-CEO, Tom Long, said the firm “strongly disagrees” with the DOE decision and Lake Charles LNG filed a request for rehearing on May 22.

Lake Charles LNG said in the request it had made “substantial progress” in the commercial development of the development, as evidenced by fully-executed long-term LNG offtake contracts for 7.9 million tons of LNG per annum, about half of the FERC-approved LNG production capacity of the facility.

The firm also said it is in “active discussions” with customers related to the remaining capacity.

Also, Energy Transfer said that it obtained EPC bids from two contractors in May this year.

Energy Transfer announced six SPAs during last year and the customers include China GasGunvorENNSK Gas, and Shell.

The company’s Lake Charles LNG project seeks to convert the company’s 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 to continue to develop the project

LNG Prime invited Energy Transfer to comment on DOE’s decision.

“We are disappointed by yesterday’s decision of the Department of Energy related to Lake Charles LNG,” a spokesperson for Energy Transfer said in an emailed statement.

“In light of the significant progress of Lake Charles LNG, we plan to continue to develop the project which may include the use of Lake Charles’ existing DOE export authorization,” the spokesperson said.

(Article updated to add a statement by Energy Transfer.)

Most Popular

Shell’s LNG Canada achieves first LNG

LNG giant Shell has started production at the first liquefaction train at its LNG Canada export terminal in Kitimat, an LNG Canada spokesperson told LNG Prime on Sunday.

Atlantic LNG shipping rates jump to $49,750 per day

Atlantic spot LNG shipping rates rose to $49,750 per day this week, while European prices also jumped compared to the previous week.

Golar progresses FLNG growth plans

Golar LNG said it had signed a final engineering study to confirm EPC price and delivery for a 5 mtpa MKIII FLNG.

More News Like This

Delfin seeks new DOE extension, eyes FID on first FLNG in August

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana, is seeking an additional extension from the US Department of Energy. The company is looking to make a final investment decision on the first FLNG in August.

Sempra gets non-FTA approval for Port Arthur LNG expansion

Sempra Infrastructure, a unit of Sempra, has received non-FTA approval from the US Department of Energy for the second phase of its Port Arthur LNG export project in Texas.

Energy Transfer, Kyushu Electric ink long-term Lake Charles LNG deal

Energy Transfer, the developer of the proposed Lake Charles LNG export facility in Louisiana, has signed a long-term supply deal with Japan's Kyushu Electric Power.

France was top destination for US LNG supplies in March

France was the top destination for US liquefied natural gas cargoes in March, according to the Department of Energy’s LNG monthly report.