ENERGY TRANSFER AND SHELL ANNOUNCE TENDER FOR LAKE CHARLES LNG PROJECT

Energy Transfer announced 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. 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.”
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.
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, headquartered in Dallas, 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.
(Source: Energy Transfer)