Given present market circumstances, Shell introduced it is not going to proceed with an fairness curiosity within the proposed Lake Charles LNG undertaking. Accordingly, Energy Transfer will take over because the undertaking developer.
Shell will proceed to assist Energy Transfer with the continued bidding course of for the engineering, procurement, and building contract after which plan a phased handover of the undertaking’s remaining actions.
“This choice is in keeping with the initiatives we introduced final week to protect money and reinforce the resilience of our enterprise,” stated Maarten Wetselaar, Director, Integrated Gas and New Energies, Shell. “Whilst we proceed to imagine within the long-term viability and benefits of the undertaking, the time isn’t proper for Shell to speculate. Through the transition, we’ll work carefully with Energy Transfer.”
Lake Charles LNG is a proposed 50/50 undertaking between Shell and Energy Transfer that seeks to transform Energy Transfer’s present import terminal to an LNG export facility in Lake Charles, Louisiana. The undertaking has a proposed liquefaction capability of 16.45 mtpa for US pure gasoline export to world clients. In addition to its brownfield benefits and permits, the undertaking has an present pipeline infrastructure. Shell entered the undertaking in its 2016 mixture with BG Group plc.
Energy Transfer and Shell signed a Project Framework Agreement in March 2019, beneath which the 2 firms agreed to share the price of creating the undertaking. Since that point the 2 firms have collectively undertaken the engineering, procurement and building (EPC) bidding course of. Shell has dedicated to assist Energy Transfer with this course of by the receipt of business EPC bids within the second quarter of 2020. Additionally, Shell will proceed to assist Energy Transfer throughout a transition interval to facilitate Energy Transfer’s plans to proceed the event of the undertaking.
“We proceed to imagine that Lake Charles is essentially the most aggressive and credible LNG undertaking on the Gulf Coast,” stated Tom Mason, Executive Vice President and President – LNG. “Having the flexibility to capitalize on our present regasification infrastructure at Lake Charles offers a price benefit over different proposed LNG initiatives on the Gulf Coast. The Lake Charles undertaking additionally advantages from its unparalleled connectivity to Energy Transfer’s present nationwide interstate and intrastate pipeline system that gives direct entry to a number of pure gasoline basins within the U.S.”
Energy Transfer owns the prevailing regasification facility in Lake Charles, Louisiana that was initially inbuilt 1982. The facility consists of 4 LNG storage tanks, two deep water docks within the Calcasieu Channel and different infrastructure property.
(Source: Shell/Energy Transfer – Image Lake Charles LNG undertaking)
The submit GIVEN DETERIORATED MARKET CONDITIONS SHELL EXITS LAKE CHARLES LNG PROJECT appeared first on Energy Global News.