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Energy Transfer aims to take FID on the Lake Charles LNG this year
2022/08/08
Energy Transfer aims to reach a final investment decision on its planned Lake Charles LNG export facility by the end of the year as the company has remarked that it has signed five LNG offtake agreements to underpin the project.
Energy Transfer aims to reach a final investment decision on its planned Lake Charles LNG export facility by the end of the year as the company has remarked that it has signed five LNG offtake agreements to underpin the project with the first LNG deliveries are expected to commence in 2026.

 

According to the Global LNG Contracts Database, Energy Transfer has already signed long-term LNG sale agreements with Singaporean unit of Gunvor (for 2 MMT/Y); China-based ENN Energy Holdings’ subsidiaries - ENN Natural Gas (for 1.8 MMT/Y) and ENN Energy (for 0.9 MMT/Y); China Gas’ subsidiary China Gas Hongda Energy Trading (for 0.7 MMT/Y) and S. Korean SK Gas (for 0.4 MMT/Y).
The Dallas-based operator has reminded that the LNG deals will become fully effective upon the satisfaction of the conditions precedent, including taking the FID on the Charles LNG export project.

 

According to the Global LNG Database®, the U.S. Department of Energy (DOE) has already authorized the Energy Transfer's proposed 16.45 MMT/Y Lake Charles LNG export facility to liquefy 2.33 BCF/D of gas for 25-year for exporting to non-FTA.
The gas liquefaction facility will be constructed on the existing brownfield regasification facility and will capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructures.
Lake Charles LNG will also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate gas pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus shale gas.
Lake Charles LNG export project received approval from the US FERC in May to extend its construction deadlines by which it must have completed construction of the liquefaction plant, as well as pipeline modifications, to 16 December 2028, from December 2025.
The project has been delayed because of “significant disruptions to the global LNG market caused by the Covid-19 pandemic”.

 


Energy Transfer has recently reported net income of $1.33 billion for the second quarter of 2022, a $700 million increase from the same period last year as it ramps up processing and transportation system capacity. The company’s good financial situation could facilitate the Charles LNG export project’s financing due diligent.

 

In other development, CapturePoint has signed a Letter of Intent (LOI) with Energy Transfer to participate in a feasibility study to capture CO2 emissions from gas processing facilities in the Haynesville Shale for sequestration in the CPS Central Louisiana Regional Carbon Storage Hub (CENLA Hub). Upon completion of the feasibility study in 2022, a positive Financial Investment Decision (FID) based on the commercial viability of the project would launch the first joint venture of Energy Transfer and CapturePoint.

 

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Source(s) Global LNG Info Analytics