BG inks Phase 2 expansion agreement for Louisiana LNG terminal

By OGJ editors
HOUSTON, Feb. 2 -- BG LNG Services LLC, a wholly owned unit of BG Group, signed Monday an agreement with Trunkline LNG Co. and Trunkline Gas Co., both units of Southern Union Co., for the second phase expansion of the Lake Charles LNG import terminal in Lake Charles, La.

BG holds rights to 100% of the terminal's capacity. Southern Union's subsidiaries will pay the cost of the expansion.

Work on the previously announced first phase expansion is already under way, BG said; Phase 1 will increase the terminal's natural gas send-out capacity to 1.2 bcfd from the current 630 MMcfd. Terminal storage capacity also will be expanded, to 9 bcf of gas from 6.3 bcf. The terminal is the largest in North America, BG said.

Phase 2 will incrementally increase the terminal's send-out capacity to 1.8 bcfd of gas.

Phase 2 details
Under Phase 2, Trunkline LNG will construct additional pumps and vaporizers, together with unloading facilities added to a second dock. Trunkline Gas, meanwhile, will build a second 30-in. 230 mile natural gas pipeline from terminal, thus increasing the total pipeline capacity out of the facility to 2.1 bcfd from the current 1.3 bcfd. Much of the Phase 2 work will be performed simultaneously with that of Phase 1.

Phase 1 is slated for completion and to be in service by Jan. 1, 2006; Phase 2 is expected to be completed in mid-2006.

Trunkline LNG this month plans to file an application with the Federal Energy Regulatory Commission for approval to begin the Phase 2 expansion work. FERC's approval is required before such work can begin, BG noted.

BG added that because this arrangement with Southern Union removes the need for the proposed Lake Charles Express pipeline extension, that application with FERC for this project has been withdrawn.