Lake Charles LNG Terminal

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

Location

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Export Project Details

  • Owner: Lake Charles LNG Company LLC
  • Parent: Energy Transfer Equity LP, Energy Transfer Partners LP
  • Location: Lake Charles, Louisiana
  • Coordinates: 30.1097132,-93.2836376 (approximate)
  • Capacity: 16.45 mtpa (three trains each with 5.48 mtpa capacity)[4]
  • Status: Proposed
  • Type: Export
  • Trains: 3[5]
  • Start Year: 2025[6]

Import Project Details

  • Owner: Lake Charles LNG Company LLC
  • Parent: Energy Transfer Equity LP, Energy Transfer Partners LP
  • Location: Lake Charles, Louisiana
  • Coordinates: 30.1097132,-93.2836376 (approximate)
  • Capacity: 17.9 mtpa[7]
  • Status: Mothballed[8]
  • Type: Import
  • Start Year: 1982[8]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

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.[9]

The next transition project will convert Energy Transfer's existing LNG regasification facility into a liquefaction plant.[10] Shell is working with Energy Transfer to add export capability to Lake Charles LNG's existing import capabilities.[4] 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.[11] 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.[12]

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.[13]

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.[14]

In March 2020 Shell announced that it was exiting the project due to plunging gas prices caused by the COVID-19 pandemic.[15] 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.[16] Following the ownership change, Energy Transfer is delaying its final decision on the project until 2021.[17]

Articles and resources

References

  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.
  3. infopost.panhandleenergy.com
  4. 4.0 4.1 Lake Charles LNG Overview Lake Charles LNG, accessed 11 June 2017
  5. Lake Charles LNG Wood Mackenzie, accessed July 17, 2019
  6. Shell to use portfolio LNG volumes to support Lake Charles plant - report Seeking Alpha, February 14, 2020
  7. The LNG Industry: Annual Report 2020, page 48, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  8. 8.0 8.1 2019 World Gas Report International Gas Union, accessed August 2019
  9. panhandleenergy.com
  10. "BG, Energy Transfer get approval for U.S. Lake Charles LNG project" Karolin Schaps, Reuters, December 18, 2015.
  11. Lake Charles LNG Development Milestones Lake Charles LNG, accessed 11 June 2017
  12. Lake Charles LNG looking to push construction deadline to 2019 LNG World News, accessed 17 July 2019
  13. Carl Surran, Energy Transfer, Shell release full commercial tender for Lake Charles LNG Seeking Alpha, December 3, 2019
  14. Lake Charles LNG Export Facility, IJGlobal, Feb. 3, 2020
  15. Shell to exit Lake Charles LNG project, Reuters, Mar. 30, 2020
  16. Kristin Mosbruckner, Shell drops out of Lake Charles LNG project, citing coronavirus and market conditions; project downsized, The Advocate, March 30, 2020
  17. IEEFA update: Financial prospects falter for LNG projects, IEEFA, Apr. 24, 2020

Related SourceWatch 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.