Technip Energies announced the award on Friday, saying the contract remains subject to Lake Charles LNG’s final investment decision before proceeding with this project.
A “major” award for Technip Energies is a contract award representing above 1 billion euro ($1.12 billion) of revenue.
The Lake Charles LNG project seeks to convert the existing regasification terminal in Louisiana, on the United States Gulf Coast, to an LNG export facility.
Technip Energies said the award for KTJV covers a new 16.45 Mtpa LNG export facility, including three 5.5 Mtpa modular LNG trains, brownfield modification to LNG storage, along with procurement, transportation, fabrication, installation, commissioning, and startup of the terminal.
“Our determination to issue a notice to proceed under the contract will be subject to our making a final investment decision to proceed with the project which will be based on obtaining sufficient commercial offtake commitments and third-party equity to satisfy our internal objectives,” Tom Mason, president of Lake Charles LNG said.
“We believe that our alignment with KTJV is one more positive step in our continuing progress on the project,” he said.
DOE non-FTA approval
Energy Transfer’s unit, Lake Charles Exports, asked the US DOE for expedited action in July on its pending application for non-FTA LNG exports from the proposed Lake Charles LNG export facility.
In August 2023, LTE filed an application with the DOE for a new export authorization for the Lake Charles LNG export terminal after the department declined Lake Charles LNG’s request to extend the deadline to start exports by December 2028.
This new request by LTE followed a decision by a federal district judge in Louisiana to block a decision by the Biden administration on issuing non-FTA (LNG) export permits for new projects.
According to a DOE filing dated July 11, LTE “requests that the DOE comply with the Court’s order and expeditiously act on its pending application in this docket and issue an order without delay.”
“Due to LCE’s unique circumstances, its pending application for authorization to export up to 851 Bcf/year of LNG from the existing import Lake Charles terminal is best suited for immediate action,” it said.
LCE noted that it is already authorized to export this same amount of LNG from the Lake Charles terminal pursuant to orders wherein DOE held that the export of this same amount of LNG is not inconsistent with the public interest under NGA section 3.
Also, the Federal Energy Regulatory Commission (FERC) has authorized the construction of the liquefaction project facilities at the Lake Charles terminal and such authorization remains in full force and effect.
Lake Charles LNG offtakers
“DOE’s “pause” on its review of LCE’s application has caused considerable angst among companies that have previously entered into long-term LNG offtake contracts with LCE as these companies have real world needs for these committed LNG volumes,” LCE said.
In addition, LCE’s discussions with other LNG customers and with potential equity participants in the project have experienced setbacks due to the uncertainty of the timing and substances of DOE’s review process related to its “pause”, LCE said.
Energy Transfer previously said it entered into definitive long-term LNG offtake contracts for 7.9 mtpa of LNG.
The company announced six SPAs in 2022, and the customers include China Gas, Gunvor, ENN, SK Gas, and Shell.
In July last year, the company also entered into three non-binding HOAs related to the long-term LNG offtake from this project for an aggregate of 3.6 mtpa of LNG.
One of the deals is with Chesapeake and Gunvor, the second deal is with EQT, and the third HOA is with a Japanese customer.
