Energy Transfer seeks extension for Lake Charles LNG
US infrastructure company Energy Transfer has asked the Federal Energy Regulatory Commission (FERC) for a three-year extension to its permit to build its 16.4mn metric tons/year Lake Charles LNG project, the company confirmed on February 7.
In a January 31 filing with FERC, Energy Transfer asked for a second extension to the completion deadline originally set at December 16, 2019 when the regulator initially approved the project in 2015. It now wants a December 16, 2028 deadline, three years later than the last extension granted in 2019.
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Energy Transfer took over the development of the Lake Charles LNG project in March 2020 after Shell announced it had decided not to proceed with an equity investment in the project, citing market conditions.
“Recent market conditions have improved our negotiations as customers realise the benefits of long-term LNG contracts with stable pricing, “ Energy Transfer spokeswoman Vicki Granado told NGW in an email. “As we continue to make substantial progress in negotiations, we are targeting FID for the liquefaction facility in the fall of 2022, subject to entering long-term offtake contracts and selling a sufficient amount of equity in the project to third parties in order to reduce Lake Charles LNG capital commitments”
The company announced continued discussions in 2020 with several significant LNG buyers from Europe and Asia regarding LNG offtake arrangements, and said those talks have been productive.
Energy Transfer owns the existing regasification facility in Lake Charles, Louisiana that was originally built in 1982. The facility includes four LNG storage tanks, two deepwater docks in the Calcasieu Channel and other infrastructure assets.