In May 2022, FERC granted Lake Charles LNG and the accompanying pipeline the extension of the deadline to complete construction and make the project available for service until December 2028.
Last month, Lake Charles LNG and Trunkline requested a three-year extension of time until December 31, 2031, in order to reach a final investment decision.
“Based on the facts presented in the request and the case record, the applicants are granted an extension of time until and including December 31, 2031 to complete construction of the projects and make them available for service,” FERC said on Thursday.
Energy Transfer’s Lake Charles LNG project seeks to convert its existing regasification terminal to an LNG export facility.
It has a proposed liquefaction capacity of 16.45 mtpa and includes three trains and also modifications to the Trunkline Gas pipeline.
Lake Charles LNG and MidOcean Energy, the LNG unit of US-based energy investor EIG, recently signed a heads of agreement, which provides a non-binding framework for the joint development of the LNG project.
Pursuant to the HoA, MidOcean would commit to fund 30 percent of the construction cost and be entitled to 30 percent of the LNG production.
More than 10.4 mtpa of LNG
During Energy Transfer’s earnings call on Tuesday, co-CEOs Tom Long and Marshal McCrea revealed three new supply deals for Lake Charles LNG volumes.
“In April, Lake Charles LNG signed a binding SPA (sales and purchase agreement) with a Japanese utility company for up to one mtpa,” Long said.
He said the agreement is subject to the approval of the board of this company, which is expected to be received by the end of May.
“Also in April, we signed an HoA (heads of agreement) with a German energy company for one mtpa,” Long said.
He did not reveal the names of the companies or other details regarding the contracts.
“Lake Charles LNG is in discussions for the remaining uncommitted LNG offtake volume and is targeting FID by year-end,” Long said.
McCrea said that the company continues to gain momentum.
“In fact, even on this call moments ago, we got a text. We signed up another 1 million tons from a large international energy company,” McCrea said.
“However, we’ve still got work to do. We now pass 10.4 million tons. We’re targeting about 15 million tons,” he said.
