Under the contract, Entergy Louisiana could supply up to 255 megawatts of power to the LNG project that is being developed by BG Group with Energy Transfer Equity, L.P. and Energy Transfer Partners, L.P. (collectively, "Energy Transfer"), which owns the existing LNG regasification facility in Lake Charles.
BG Group is responsible for selecting the engineering, procurement and construction contractor and managing construction. Upon completion, BG Group will operate and be responsible for the LNG offtake from the facility. Energy Transfer will own the facility and is responsible for the financing of the project. The project will be considered for a final investment decision in 2016, and the contract with Entergy Louisiana is contingent on this milestone.
"This is a large project that is helping to fuel the economic success of the southwestern Louisiana Gulf Coast region. Entergy Louisiana is proud to be a part of that," said Phillip May, Entergy Louisiana president and CEO. "This is truly unprecedented growth and real opportunity for our state to become leaders in LNG exportation."
Besides its favorable economic impact on southwest Louisiana, the project will bring several thousand jobs during construction and sustainable, long-term operational positions for current and future generations.
"Entergy Louisiana provides safe, reliable and affordable power that industrial customers can count on," said Ed Jimenez, Entergy Louisiana business and economic development director. "Initially, BG Group and Energy Transfer were planning to self-generate electricity to serve the liquefaction facility; however, Entergy Louisiana worked closely with Lake Charles LNG to have this exciting opportunity to be their electric service provider."
