Lake Charles LNG Export Project Update
Lake Charles LNG Export Project Update
Development Milestone Achieved
DALLAS & HOUSTON--(BUSINESS WIRE)-- Energy Transfer Equity, L.P. (NYS: ETE) and Energy Transfer Partners, L.P. (NYS: ETP) (collectively, "Energy Transfer") and BG Group (ISE: BG.L) announced today that they have entered into a project development agreement (PDA) to jointly develop the liquefied natural gas (LNG) export project at the existing Trunkline LNG import terminal in Lake Charles, Louisiana.
The announcement follows the Department of Energy conditionally granting authorization to Energy Transfer and BG Group to export from the existing Trunkline LNG import terminal up to 15 million metric tonnes per annum (mtpa) of LNG to non-free trade agreement nations.
The proposed project will include the construction of three liquefaction trains and will use the existing LNG storage and marine berthing facilities owned by Trunkline LNG Company, LLC (a wholly-owned subsidiary of Energy Transfer). Energy Transfer has secured all property rights required for the site of the liquefaction facility.
The project is being developed to liquefy domestic supplies of natural gas for export to meet growing global demand for LNG. Exporting LNG to world markets is expected to provide economic and employment related benefits for the U.S., including approximately 250 operational positions and several thousand jobs during the project's construction phase.
The PDA sets forth the commercial arrangements between the parties and a final investment decision to proceed with the project is expected to be made in 2015.
Energy Transfer will own and finance the proposed new liquefaction facility, and BG Group will have a long-term tolling agreement with Energy Transfer for the offtake, although BG Group may choose to assign some of its capacity or offtake to third parties. Trunkline Gas Company, LLC (a wholly-owned subsidiary of Energy Transfer), will provide pipeline transportation services to supply natural gas to the project.
BG Group views Lake Charles as an attractive, low cost LNG supply option and is one of the most advanced LNG development projects in its portfolio. BG Group will oversee the engineering and design and will manage construction of the facility, as well as operate the combined facility. The project's front end engineering and design (FEED) study being done by Technip is well advanced. The project is in the Federal Energy Regulatory Commission's (FERC) "pre-filing" environmental review process, with the parties currently expecting to file a formal application with the FERC by the end of the first quarter of 2014.
Pending final investment decisions from both Energy Transfer and BG Group, construction is expected to start in 2015, with first LNG exports anticipated in 2019.
Energy Transfer Partners, L.P.
Energy Transfer Equity, L.P. (NYS: ETE) is a master limited partnership which owns the general partner and 100% of the incentive distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYS: ETP) and approximately 99.7 million ETP common units; and owns the general partner and 100% of the IDRs of Regency Energy Partners LP (NYS: RGP) and approximately 26.3 million RGP common units. The Energy Transfer family of companies owns more than 56,000 miles of natural gas, natural gas liquids, refined products, and crude pipelines. For more information, visit the Energy Transfer Equity, L.P. web site at www.energytransfer.com.
BG Group plc
Energy Transfer Forward-Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Among those is the risk that the anticipated benefits from the proposed transaction cannot be fully realized. An extensive list of factors that can affect future results are discussed in the Partnerships' Annual Reports on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnerships undertake no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on Energy Transfer's website at www.energytransfer.com.
Energy Transfer Media and Investor Contacts
Vicki Granado, 214-498-9272
Brent Ratliff, 214-981-0700
BG Group Media and Investor Contacts
Mark Todd, +44 (0) 118 929 3110
Kim Blomley, +44 (0) 118 938 6568
Out of Hours Media Mobile: +44 (0) 7917 185 707
Investor Relations: +44 (0) 118 929 3025 / +65 6304 2028
KEYWORDS: United States North America Louisiana Texas
The article Lake Charles LNG Export Project Update originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.