By December 18, 2015 Read More →

Lake Charles LNG Project green lighted by feds

Lake Charles LNG Project expected to be one of largest LNG export initiatives in US

BG Group and Energy Transfer Equity, L.P. have received approved from the US government to build the Lake Charles LNG Project, the companies announced Thursday.

Lake Charles LNG US Federal Energy Regulatory Commission was the key remaining regulatory consent for the natural gas liquefaction and export facility in Lake Charles, Louisiana. The US Department of Energy had already provided conditional authorization to export up to 2 billion cubic feet of natural gas per day (approximately 15 million metric tons of LNG a year).

The Lake Charles LNG Project is expected to be one of the largest LNG export initiatives in the United States, BG Group (LSE: BG.L) and Energy Transfer Equity, L.P. (NYSE: ETE) said in a press release.

“Our focus is on being a good neighbor in Lake Charles, where we’ll be working in a collaborative manner with local communities to minimize the impacts from construction,” said Jason Klein, general manager for BG Group’s America Asset.

Lake Charles LNG “At the same time, we’re excited about our role in the economic expansion of Southwest Louisiana. Lake Charles LNG has the potential to create several thousand jobs during construction and if fully operational could result in approximately 250 long-term operational positions – sustainable jobs for current and future generations.”

The project’s technology, which includes aero derivative turbines with selective catalytic reduction, is designed to make it one of the most efficient and cleanest operating LNG facilities in the world, with air emissions expected to be well below US and state limits, the companies say.

Final investment decisions from both BG Group and Energy Transfer are expected to be made in 2016, with construction to start immediately following a positive decision and first LNG exports anticipated about four years later.

Energy Transfer owns the existing LNG regasification facility in Lake Charles. By taking advantage of a brownfield site that includes LNG tanks and other existing infrastructure, as well as access to a highly developed and liquid gas market, the Lake Charles LNG Project has the capability to be one of the most competitive new supply sources for LNG and would significantly add to BG Group’s global LNG supply portfolio, according to the companies.

Energy Transfer, which will become the largest transporter of natural gas in the United States upon the close of the previously announced transaction with The Williams Companies, Inc., will provide pipeline transportation services on its Trunkline Gas pipeline system sufficient to supply Lake Charles LNG.

BG Group is responsible for selecting the engineering, procurement and construction contractor and managing construction. Upon completion, BG Group would operate and be responsible for the LNG offtake from the facility.

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