Shell U.S. LNG LLC and Energy Transfer LP recently signed a project framework agreement (PFA) that provides the framework to further develop a large-scale LNG export facility in Lake Charles, Louisiana, toward a potential final investment decision (FID). In addition, the parties have started actively engaging with LNG engineering, procurement and contracting (EPC) companies, with a plan to issue an invitation to tender in the weeks ahead.
The Lake Charles LNG project brings two leading entities -- Shell as a worldwide leader in gas and LNG, and Energy Transfer as one of the largest pipeline operators in the U.S. -- to advance a project to monetize abundant, low-cost U.S. gas for export to global customers.
"We are pleased to be moving forward with Shell in progressing this major LNG export project," said Tom Mason, president of Lake Charles LNG, an Energy Transfer subsidiary. "We believe the combination of our assets and Shell's LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched."
The PFA defines the commercial terms by which the two companies will work toward delivering an LNG export facility on the U.S. Gulf Coast. Shell will act as the project lead prior to the companies reaching an 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 decision to make an affirmative FID to proceed with construction of the project will be subject to both companies' assessment of the outcome of the EPC bidding process, overall competitiveness and global LNG market conditions at the time of such decision.
If built, the project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational.
For more information, visit www. shell.us or call +31 70 377 9111.
