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Lake Charles LNG receives final regulatory approval

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Hydrocarbon Engineering,

BG Group, Energy Transfer Equity, L.P. (ETE) and Energy Transfer Partners, L.P. (ETP) have 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 authorisation from the US Department of Energy to export up to 2 billion ft3/d of natural gas (or approximately 15 million tpy of LNG), the Lake Charles LNG Project is expected to be one of the largest LNG export initiatives in the US. 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.

“Our focus is on being a good neighbor in Lake Charles, where we’ll be working in a collaborative manner with local communities to minimise the impacts from construction,” said Jason Klein, General Manager for BG Group’s America Asset. “At the same time, we’re excited about our role in the economic expansion of Southwest Louisiana. Lake Charles LNG has the potential to create several thousand jobs during construction and if fully operational could result in approximately 250 long term operational positions – sustainable jobs for current and future generations.”

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 US 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.

Adapted from press release by Rosalie Starling

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