DALLAS–(BUSINESS WIRE)–Energy Transfer LP (NYSE: ET) announced today that a comprehensive commercial tender package has been issued to engineering, procurement and construction (EPC) contractors to submit final commercial bids for the proposed Lake Charles LNG liquefaction project being developed by Energy Transfer and Shell US LNG, LLC (Shell). The project, if sanctioned by Energy Transfer and Shell, would modify Energy Transfer’s existing LNG import facility located in Lake Charles, Louisiana to add LNG liquefaction capacity of 16.45 million tonnes per annum (MTPA) for export to global markets. The commercial bids are expected to be received in the second quarter of 2020.
The commercial tender expands on the invitation to tender (ITT) announced in May 2019 that focused on the technical scope of project, specifically the contractors’ verification of the engineering and design of the proposed liquefaction facility. The commercial tender invites the EPC contractors to develop a comprehensive commercial bid for the lump sum turnkey contract based on a fully developed scope related to design, engineering, technical and safety specifications for the construction, commissioning and start-up of the proposed Lake Charles LNG project. The commercial tender also requires the submission by the contractors of a fully developed execution plan and completion schedule.
“This is an important step in the continued development of this LNG project with Shell,” said Tom Mason, President of Energy Transfer LNG. “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 commercial tender represents another important milestone in our phased approach to developing a credible and safe LNG project for Shell and Energy Transfer,” said Frederic Phipps, Shell, Vice President of Lake Charles. “We look forward to continue leveraging our global experience in LNG development and build on our positive collaboration with EPC contractors to drive value and competitiveness throughout the bid process.”
Shell will act as the Project Lead prior to the companies reaching a Final Investment Decision (FID), and if sanctioned, as Construction Manager and Operator of the facility. Energy Transfer will act as Site Manager and Project Coordinator prior to FID.
About Lake Charles LNG
The proposed Lake Charles LNG project brings together two leading entities – Energy Transfer as one of the largest pipeline operators in the US and Shell as a worldwide leader in gas and LNG – to monetize abundant, cleaner, low-cost US natural gas for future export to customers around the world. The project is fully permitted, uses existing infrastructure and benefits from direct natural gas supply via Energy Transfer’s vast pipeline network.
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins. ET is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, NGL and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. ET, through its ownership of Energy Transfer Operating, L.P., also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 46.1 million common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com.
This news 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. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Shell has been a pioneer in LNG for more than 50 years and is involved in every stage of the LNG value chain: from finding the fields, extracting the gas and liquefying it; to shipping LNG and turning it back into gas; to distributing it to customers. Shell has LNG supply projects around the world, as well as interests in and long-term capacity access to regasification plants. Shell US LNG, LLC is a wholly owned subsidiary of Royal Dutch Shell plc.
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