Lake Charles LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

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.[1][2]

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.[3] An export terminal expansion project is proposed at the site.


Loading map...

Project details

Export Terminal

  • Owner: Lake Charles LNG Company, LLC; Lake Charles LNG Export Company, LLC[4]
  • Operator: Lake Charles LNG Export Company, LLC[5]
  • Parent company: Energy Transfer[6]
  • Location: Lake Charles, Louisiana
  • Coordinates: 30.120416, -93.287833 (exact)
  • Capacity: 17.8 mtpa (5.93 mtpa per train)[7]
  • Cost: US$13.2 billion[8]
    • Formerly US$10.9 billion
  • Status: Proposed[7][9]
  • FID Status: Pre-FID (2023)[10]
    • Formerly Pre-FID (2022)[9]
  • Type: Export[7]
  • Trains: 3[11]
  • Start year: 2028[12][13]

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[14]
  • Status: Mothballed[15]
  • Type: Import
  • Start year: 1982[15]


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.[16]

The next transition project will convert Energy Transfer's existing LNG regasification facility into a liquefaction plant.[17] Shell is working with Energy Transfer to add export capability to Lake Charles LNG's existing import capabilities.[18] 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.[19] 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.[20]

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.[21]

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.[22]

In March 2020 Shell announced that it was exiting the project due to plunging gas prices caused by the COVID-19 pandemic.[23] 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.[24] Following the ownership change, Energy Transfer is delaying its final decision on the project until 2021.[25]

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.[7]

As of September 2021, no LNG supply agreements or contracts had been announced by the project developer.[26]

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.[13]

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.[27] A final investment decision was expected by the end of 2022.[28]

In November 2022, Energy Transfer said that it was targeting Q1 2023 for FID.[10]

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.[29] 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.[30]


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.[31]

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.[28] Energy Transfer also signed an 18-year deal to supply 0.4 mtpa of LNG to South Korea's SK Gas.[32]

In June 2022, China Gas Holdings agreed to purchase 0.7 mtpa LNG from the facility for 25 years.[33]

In August 2022, Energy Transfer signed 20-year sales and purchase agreement with Shell for 2.1 mtpa of LNG.[34]

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).[35] Later than month, EQT entered a preliminary agreement with Energy Transfer for a tolling agreement to export 1 mtpa of LNG from the facility.[36]

Articles and resources


  1. "Lake Charles LNG export project partners file FERC application" Oil & Gas Journal, March 26, 2014.
  2. "Lake Charles LNG" Energy Transfer, accessed October 26, 2015.
  4. Lake Charles LNG Company, LLC; Trunkline Gas Company, LLC; Notice of Request for Extension of Time. Federal Register. February 9, 2022.
  5. U.S. Liquefaction Capacity. EIA. Accessed May 2022.
  6. "Lake Charles LNG | Who We Are". Retrieved 2022-05-17.
  7. 7.0 7.1 7.2 7.3 U.S. Liquefaction Capacity, Energy Information Administration, November 3, 2020
  8. Reuters Staff. "EQT in deal with Energy Transfer Louisiana Lake Charles LNG export plant". U.S. Retrieved 2023-09-01. {{cite news}}: |last= has generic name (help)
  9. 9.0 9.1 Energy Transfer Clinches Fourth Lake Charles LNG Supply Deal in Less Than Two Months. Natural Gas Intelligence. May 3, 2022.
  10. 10.0 10.1 LNG Prime Staff (2022-11-03). "Energy Transfer targeting Lake Charles LNG FID by Q1 2023". LNG Prime. Retrieved 2023-09-01.
  11. Lake Charles LNG, Wood Mackenzie, accessed July 17, 2019
  12. Shell to use portfolio LNG volumes to support Lake Charles plant - report Seeking Alpha, February 14, 2020
  13. 13.0 13.1 "Energy Transfer requests 3-year extension to complete Lake Charles LNG". Oil & Gas Journal. Retrieved 2022-02-06.{{cite web}}: CS1 maint: url-status (link)
  14. The LNG Industry: Annual Report 2020, page 48, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  15. 15.0 15.1 2019 World Gas Report International Gas Union, accessed August 2019
  17. "BG, Energy Transfer get approval for U.S. Lake Charles LNG project" Karolin Schaps, Reuters, December 18, 2015.
  18. Lake Charles LNG Overview Lake Charles LNG, accessed 11 June 2017
  19. Lake Charles LNG Development Milestones Lake Charles LNG, accessed 11 June 2017
  20. Lake Charles LNG looking to push construction deadline to 2019 LNG World News, accessed 17 July 2019
  21. Carl Surran, Energy Transfer, Shell release full commercial tender for Lake Charles LNG Seeking Alpha, December 3, 2019
  22. Lake Charles LNG Export Facility, IJGlobal, Feb. 3, 2020
  23. Shell to exit Lake Charles LNG project, Reuters, Mar. 30, 2020
  24. Kristin Mosbruckner, Shell drops out of Lake Charles LNG project, citing coronavirus and market conditions; project downsized, The Advocate, March 30, 2020
  25. IEEFA update: Financial prospects falter for LNG projects, IEEFA, Apr. 24, 2020
  26. Corey Paul, LNG Project Tracker: Momentum builds 'at least for a couple' of export projects, S&P Global, Sep. 15, 2021
  27. "FERC Extends Construction Deadlines For Two LNG Projects". Retrieved 2022-05-17.
  28. 28.0 28.1 "Energy Transfer signs LNG deal with Gunvor". Oil & Gas Journal. Retrieved 2022-05-02.{{cite web}}: CS1 maint: url-status (link)
  29. "Energy Dept. refuses Energy Transfer's rehearing request for LNG project". Reuters. Retrieved 2023-09-01.
  30. "Lake Charles LNG Loses Bid for Second Extension to Export Gas". Retrieved 2023-09-01.
  31. Energy Transfer and ENN Sign 20-Year LNG Sale and Purchase Agreements for Lake Charles LNG. Business Wire. March 29, 2022.
  32. "Energy Transfer pens 18-year LNG supply deal with South Korea's SK Gas". LNG Prime. 2022-05-03. Retrieved 2022-05-04.
  33. Energy Transfer signs agreement for LNG supply to China Gas. Reuters. June 6, 2022.
  34. "UPDATE 2-Energy Transfer signs 20-year LNG supply deal with Shell". Retrieved 2022-08-25.
  35. Reuters Staff. "EQT in deal with Energy Transfer Louisiana Lake Charles LNG export plant". U.S. Retrieved 2023-09-01. {{cite news}}: |last= has generic name (help)
  36. Reuters Staff. "EQT in deal with Energy Transfer Louisiana Lake Charles LNG export plant". U.S. Retrieved 2023-09-01. {{cite news}}: |last= has generic name (help)

Related 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.