BG Group (LSE: BG.L) and Energy Transfer Equity, L.P. (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP) (collectively, “Energy Transfer”) today announced that the Lake Charles LNG Project has received approval from the US Federal Energy Regulatory Commission (FERC) to site, construct and operate a natural gas liquefaction and export facility in Lake Charles, Louisiana. FERC approval was a key remaining regulatory consent for the Lake Charles LNG Project.
With a conditional authorization from the US Department of Energy to export up to 2 billion cubic feet of natural gas per day (or approximately 15 million metric tons of LNG per annum), the Lake Charles LNG Project is expected to be one of the largest LNG export initiatives in the United States. The technology chosen for the project, 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.
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.
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.