Energy Transfer and Shell US LNG have launched tender for the engineering, procurement and construction (EPC) contract for their proposed Lake Charles LNG export project in Louisiana, US.
Image: Energy Transfer, Shell seek bids for EPC contract for Lake Charles LNG export project. Photo: courtesy of Carlo San/Freeimages.com.
The partners have issued an invitation to tender (ITT) to the interested US and international consortia to bid for the contract for the Lake Charles LNG export project which will have liquefaction capacity of 16.45 million tons per annum.
The ITT the project framework agreement (PFA) signed in March by Shell and Energy Transfer, to define the commercial terms and directions to advance the development of the LNG export project in Lake Charles towards a final investment decision (FID).
The project is being developed by Energy Transfer’s subsidiary Lake Charles LNG Export. Shell, on the other hand, will lead the project prior to the partners taking an FID, and after its sanctioning, will be its construction manager and operator.
Lake Charles LNG president Tom Mason said: “We are excited to announce this major milestone in the development of the Lake Charles LNG liquefaction project.
“The prospective bidders are world-class EPC contractors who will bring extensive LNG experience to bear as they develop their bids.”
If sanctioned by the partners, the project would call for the conversion of the existing Lake Charles LNG import and regasification terminal owned by Energy Transfer into an LNG export facility to export US natural gas to overseas customers.
The Lake Charles LNG export project has all the permits it needs to move ahead for construction. In 2015, it secured the construction permit from the US Federal Energy Regulatory Commission (FERC) and since then had received permits from the Department of Energy (DOE) to export LNG to Free-Trade-Agreement (FTA) and also Non-FTA countries.
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.
Lake Charles LNG project vice president Frederic Phipps said: “The invitation to tender is another step in our journey to progress a competitive and safe LNG project on the U.S. Gulf Coast.
“Already, leading EPC providers have expressed interest in participating in Lake Charles LNG, a project that will contribute to growing U.S. LNG exports should a FID be taken.”