Energy Transfer LP and Shell U.S. LNG, LLC (Shell) on Monday signed a Project Framework Agreement (PFA) to develop a large-scale liquefied natural gas (LNG) export facility in the U.S. state of Louisiana.
According to Energy Transfer's press release, the PFA will provide the framework to further develop the export facility toward a potential final investment decision (FID).
The facility is located in Lake Charles, about 230 km northeast of downtown Houston and almost located in the middle of Houston and Baton Rouge, the capital city of Louisiana.
The Lake Charles LNG project brings together the two companies to advance a project to monetize abundant, low-cost U.S. gas for export to global customers.
The Lake Charles project is a 50/50 venture between ET and Shell. The project, if sanctioned through an affirmative FID, would convert Energy Transfer's existing Lake Charles LNG import and regasification terminal to an LNG export facility with a liquefaction capacity of 16.45 million tonnes per annum to export U.S. natural gas to global customers.
Energy Transfer LP, as one of the largest pipeline operators in the United States, 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 U.S. production basins.
Shell has been a pioneer in LNG for more than 50 years and is involved in every stage of the LNG value chain. Shell U.S. LNG, LLC is a wholly owned subsidiary of Royal Dutch Shell plc.
Editor:Cherie
