Shell, Energy Transfer to open LNG export facility in Louisiana

Published on March 27, 2019 by Dave Kovaleski

Energy Transfer and Shell are planning to develop a large-scale LNG export facility in Lake Charles, La.

The two companies will issue an invitation to tender for LNG engineering, procurement and contracting companies. Shell is a worldwide leader in gas and LNG, while Energy Transfer is one of the largest pipeline operators in the United States.

“We are pleased to be moving forward with Shell in progressing this major LNG export project,” Tom Mason, president of Lake Charles LNG, an Energy Transfer subsidiary, said. “We believe the combination of our assets and Shell’s LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched.”

As part of the agreement, Shell will act as the construction manager and operator of the facility. Energy Transfer will act as site manager and project coordinator. It is a 50/50 venture between Energy Transfer and Shell.

“Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020’s,” Frederic Phipps, Shell’s vice president of Lake Charles LNG, said. “Our partnership with Energy Transfer plays to our respective strengths. Together, we are expertly positioned to advance a project that could provide customers in Asia, Europe and the Americas with cleaner, reliable energy for decades to come.”

The project would convert Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG export facility with a liquefaction capacity of 16.45 million tons per year to export U.S. natural gas to global customers. It is estimated to create up to 5,000 local jobs during construction and 200 full-time positions.