Energy Transfer is optimistic that it will take a final investment decision on its proposed Lake Charles LNG export facility in Louisiana, but it will take the firm longer than previously expected, according to its co-CEO, Tom Long.
Long said in November last year that Energy Transfer was planning to take the decision by the end of the first quarter of 2023.
The company announced six SPAs during last year, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to nearly 8 mtpa.
The customers include China Gas, Gunvor, ENN, SK Gas, and Shell.
Energy Transfer’s Lake Charles LNG project seeks to convert the company’s 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.
Long told analysts during Energy Transfer’s fourth-quarter results call on Wednesday that global demand for LNG “remained strong” as energy security has emerged as a key theme for LNG.
In addition, US natural gas producers have shown increased interest in committing a portion of their production to long-term sales arrangements at European and Asian natural gas or LNG index prices, he said.
“We view these two factors as key drivers toward securing additional long-term LNG offtake agreements,” Long said.
“The LNG market along the Gulf Coast is currently extremely competitive. Given this level of competition, it is taking us longer to reach FID than originally expected, but we are optimistic that we will bring this project to FID,” he said.
“We continue making progress on all aspects of the project and are working hard to sign up more customers, and we’ll share additional information as it becomes available,” he added.
