The project involves the conversion of existing Lake Charles LNG import and regasification terminal to an LNG export facility
Energy Transfer LP and Shell US LNG have launched a comprehensive tender package seeking final commercial seeking bids from the engineering, procurement and construction (EPC) contractors for the proposed Lake Charles LNG liquefaction project in Louisiana, US.
Being developed jointly by Energy Transfer and Shell, the project involves the conversion of Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG export facility, if sanctioned.
Energy Transfer LNG president Tom Mason said: “This is an important step in the continued development of this LNG project with Shell.
“This project capitalizes on repurposing existing brownfield regas assets to achieve cost savings in the construction of the liquefaction facility.
“The project will also benefit from the unique strength of Energy Transfer as a leading natural gas pipeline operator with extensive connectivity to the Lake Charles facility.”
The project is expected to add LNG liquefaction capacity of 16.45 million tonnes per annum (Mtpa) for export to global markets.
Final commercial bids to be received in second quarter of 2020
Energy Transfer expects to receive the commercial bids for the project in the second quarter of next year.
Shell Lake Charles vice-president Frederic Phipps said: “The commercial tender represents another important milestone in our phased approach to developing a credible and safe LNG project for Shell and Energy Transfer.”
The latest commercial tender calls on EPC contractors to submit a fully developed execution plan and completion schedule of the project.
The trend expands on the invitation to tender (ITT), which was announced in May 2019 that focused on the project’s technical scope.
Until reaching a final investment decision (FID), Shell will serve as the project lead. It will also act as the construction manager and operator of the facility upon sanction.
Meanwhile, ET will act serve as site manager and project coordinator prior to reaching FID.
The Lake Charles LNG export project will use existing infrastructure and tap into the vast natural gas supply and proximity to Energy Transfer’s pipeline network and other major pipeline infrastructure.