Energy Transfer to file application for new Lake Charles LNG export authorization

Texas-based Energy Transfer said it plans to file in August an application with the US DOE for a new export authorization for the company’s proposed Lake Charles LNG export facility in Louisiana.

In April this year, the department declined Lake Charles LNG’s request to extend the deadline to start exports by December 2028.

After that, the DOE also declined a rehearing request in June.

“We have had discussions with the DOE subsequent to this decision, and we believe the best path forward with the DOE is to file an application for a new export authorization. We expect to file this application in August,” Energy Transfer’s co-CEO, Tom Long, told analysts during the company’s second-quarter earnings call on Wednesday.

During the DOE’s review of this application, Energy Transfer intends to continue to work with its existing customers, respective equity investors, and other stakeholders to progress the development of this project, he said.

In this regard, in July, the company entered into three non-binding HOAs related to the long-term LNG offtake from this project for an aggregate of 3.6 mtpa of LNG, Long said.

One of the deals is with Chesapeake and Gunvor, the second deal is with EQT, and the third HOA is with a Japanese customer.

25 percent of equity ownership

Asked about equity ownership in Lake Charles LNG during the call, Energy Transfer’s co-CEO, Mackie McCrea, said that “nothing has really changed there”.

“We kind of have a target of around 25 percent of equity ownership,” he said.

“We won’t really talk about who the equity partners potentially are. I mentioned a few without naming them, but yes, there’s more than that. There are some producers that expressed interest,” McCrea said.

“And so, there’s a wide range as we kind of consummate some of the bigger equity commitments, then we’ll go to whatever remaining commitments that we need to attain that kind of 75 percent of partners in the project,” he said.

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

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

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

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.

Most Popular

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Spain was top destination for US LNG supplies in April

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

Energy Transfer, Chevron expand Lake Charles LNG deal

Energy Transfer, the developer of the proposed Lake Charles LNG export facility in Louisiana, has signed a new deal with energy giant Chevron for additional LNG volumes.

Mexico Pacific seeks DOE extension

Mexico Pacific, the developer of the planned 15 mtpa Saguaro Energia LNG export project, is seeking a seven-year extension of its export deadline from the US Department of Energy.

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.