Lake Charles LNG Terminal

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Lake Charles LNG is a liquefied natural gas import and regasification plant in Lake Charles, Louisiana. Formerly known as Trunkline LNG Co. LLC, Lake Charles LNG is a wholly owned subsidiary of Energy Transfer Equity LP and Energy Transfer Partners LP.

Lake Charles LNG provides terminal service for shippers by receiving LNG at the facility for storage and delivering such LNG to shippers, either in liquid state or gaseous state after regasification. An export terminal expansion project is proposed at the site.

Location

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Project details

Export Terminal

• Owner: Lake Charles LNG Company, LLC; Lake Charles LNG Export Company, LLC
• Operator: Lake Charles LNG Export Company, LLC
• Parent company: Energy Transfer
• Location: Lake Charles, Louisiana
• Coordinates: 30.120416, -93.287833 (exact)
• Capacity: 17.8 mtpa (5.93 mtpa per train)
• Cost: US$13.2 billion
  • Formerly US$10.9 billion
• Status: Proposed
• FID Status: Pre-FID (Q2 2024)
  • Formerly Pre-FID (2023)
  • Formerly Pre-FID (2022)
• Type: Export
• Trains: 3
• Start year: 2028

Import Terminal

• Owner: Lake Charles LNG Company LLC
• Parent company: Energy Transfer
• Location: Lake Charles, Louisiana
• Coordinates: 30.120416, -93.287833 (exact)
• Capacity: 17.9 mtpa
• Status: Mothballed
• Type: Import
• Start year: 1982

Background

The former Trunkline LNG has been in transition since 2006.

The Phase I expansion, which included a second ship berth and a new LNG storage tank that increased terminal storage capacity to 9 billion cubic feet (250,000,000 m3), was placed in service on April 5, 2006. Trunkline LNG completed the Phase II terminal expansion in early July 2006, increasing sustained sendout capacity to 1.8 billion cubic feet per day (51,000,000 m3/d) and peak sendout capacity to 2.1 Bcf/d. The Phase II expansion also included the construction of unloading capabilities at the terminal’s second dock.

The next transition project will convert Energy Transfer's existing LNG regasification facility into a liquefaction plant. Shell is working with Energy Transfer to add export capability to Lake Charles LNG's existing import capabilities. The export facility will have three production trains, with 5.48 mmtpa capacity each.

In December 2015 the Lake Charles LNG Project gained approval from the U.S. energy regulator for their LNG and export plant expansion project. Construction of the expansion project is pending.

In April of 2018, Lake Charles LNG sought a permit to extend construction start deadline to November 1, 2019.

In December of 2019, Energy Transfer announced that commercial tender packages had been issued to engineering, procurement, and construction contractors for final bids for the proposed Lake Charles LNG export facility. Commercial bids are expected to be received in Q2 2020.

In February 2020, IJGlobal reported that JPMorgan Chase had been appointed as the financial advisor and mandated lead arranger for a syndicated project loan estimated at US$9.2 billion. Overall project costs are estimated to be US$10.9 billion, with the remainder of the financing to come from equity stakes and cash generation.

In March 2020 Shell announced that it was exiting the project due to plunging gas prices caused by the COVID-19 pandemic. In response to market changes, the project scope may shrink to only two trains, which could export up to 11 million tons per year, according to Energy Transfer. In the meantime, Lake Charles LNG is still waiting for an air permit from the Louisiana Department of Environmental Quality. The companies expected commercial bids for engineering and construction by second-quarter 2020. A final investment decision had not been made. Following the ownership change, Energy Transfer is delaying its final decision on the project until 2021.

According to the U.S. Energy Information Administration, Lake Charles Exports LLC submitted two applications for export capacity approval. Together, the two applications are for a proposed capacity of 17.8 mtpa across 3 trains.

As of September 2021, no LNG supply agreements or contracts had been announced by the project developer.

In February 2022, Energy Transfer requested a three-year extension to complete the terminal to December 16, 2028, after the pipeline and plant construction was intended to have entered service by December 17, 2020 and received an extension to 2025.

In May 2022, the Federal Energy Regulatory Commission (FERC) agreed to allow Energy Transfer an extension until 2028 to build the facility, over the opposition of Sierra Club, Healthy Gulf, and Louisiana Bucket Brigade. A final investment decision was expected by the end of 2022.

In November 2022, Energy Transfer said that it was targeting Q1 2023 for FID.

In June 2023, the US Department of Energy refused a rehearing request submitted by the sponsor for a second extension of the Lake Charles project. According to the company's own filing to DOE, this decision could kill the project entirely. The decision means that Lake Charles LNG will lose its authorization to export gas unless exports begin by December 16, 2025, which is not possible given the project's current timeline. Energy Transfer applied for a new DOE export authorization license in August 2023.

In November 2023, the expected FID was delayed again, now planned for Q2 2024.

In January 2024, Japan's Kyushu Electric said that it was considering taking a 10% stake in the project as well as a 20-year offtake contract for 1.6 mtpa.

Contracts

In March 2022, Energy Transfer and China's ENN Natural Gas and ENN Energy Holdings Limited announced a sale and purchase agreement for 1.8 mtpa to ENN Natural Gas and 0.9 mtpa to ENN Energy over a 20-year duration.

In May 2022, Energy Transfer signed a 20-year deal to supply 2 mtpa of LNG to Gunvor Singapore Pty, Ltd, a subsidiary of Gunvor Group Ltd, Geneva. Energy Transfer also signed an 18-year deal to supply 0.4 mtpa of LNG to South Korea's SK Gas.

In June 2022, China Gas Holdings agreed to purchase 0.7 mtpa LNG from the facility for 25 years.

In August 2022, Energy Transfer signed 20-year sales and purchase agreement with Shell for 2.1 mtpa of LNG.

In July 2023, Energy Transfer announced multiple non-binding offtake agreements (Heads of Agreements, of HOAs) with an unnamed Japanese consortium (1.6 mtpa, 20 years), Chesapeake Energy Marketing (with Gunvor Sinapore Energy as the ultimate buyer)(1 mtpa, 15 years), and an unnamed US-based company as part of a tolling agreement (1 mtpa, 15 years). Later than month, EQT entered a preliminary agreement with Energy Transfer for a tolling agreement to export 1 mtpa of LNG from the facility.

In January 2024, Japan's Kyushu Electric said that it was considering signing a 20-year offtake contract for 1.6 mtpa, as well as taking a 10% stake in the project.

Articles and resources

Related GEM.wiki articles

Wikipedia also has an article on Lake Charles LNG Terminal. This article may use content from the Wikipedia article under the terms of the GFDL.