Lake Charles LNG gets feasibility study, nod for more exports

Lake Charles LNG Export Co. LLC, a subsidiary of Energy Transfer Partners LP (ETP), has entered into a memorandum of understanding with Korea Gas Corp. (Kogas) to study the feasibility of joint participation in the Lake Charles LNG liquefaction project in Lake Charles, La. Houston-based BG LNG Services LLC, a subsidiary of Royal Dutch Shell PLC, also is participating in the study.

The nonbinding MOU will allow the parties to study the economics of the project, the engineering, procurement, and construction agreement for the project, and the feasibility of sourcing and marketing domestically produced gas to export as LNG.

The project also has received approval for two long-term applications from the US Department of Energy to export an additional 330 MMcfd of gas. DOE previously authorized the facility to export up to the equivalent of 2 bcfd to any country in the world not prohibited by US law or policy.

The facility is 60% owned by Energy Transfer Equity and 40% by ETP. The liquefaction project under consideration will utilize ETP’s existing regasification import facility to accommodate the development of the liquefaction project.

The 440-acre site is close to Henry Hub and connected to ETP’s 2,200-mile Trunkline Gas Pipeline system that interconnects with more than a dozen interstate and intrastate pipelines.