Page 13 - GLNG Week 35 2022

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Shell, Energy Transfer sign Lake Charles

LNG offtake agreement

TERMINALS SHELL and Energy Transfer have signed a the end of this year. The company also notes on
20-year sales and purchase agreement (SPA) for its website that Lake Charles LNG is the only
2.1mn tonnes per year (tpy) of LNG produced brownfield project among the proposed US LNG
at the planned Lake Charles LNG project in terminals at the pre-FID stage, which it believes
Louisiana. gives the development a cost advantage.
The move represents the latest in a series of “We believe that Lake Charles is the most
binding offtake agreements signed by Energy competitive LNG project on the Gulf Coast,”
Transfer over the past few months. The Lake stated Energy Transfer LNG’s president, Tom
Charles LNG project, which involves conversion Mason. “And we are particularly pleased that
of an existing import facility to exports, had not one of the most prominent LNG industry par-
been viewed as a development that was likely to ticipants has selected Lake Charles LNG as a
move forward soon until recently, when rising supplier. We have had a long-standing relation-
LNG demand revived its fortunes. As a result, ship with Shell and its predecessor BG Group, as
Energy Transfer has now signed six offtake deals a customer of our regasification facility at Lake
covering nearly 8mn tpy of output from the facil- Charles. It is great to have Shell re-engaged in the
ity, or almost half of the project’s planned capac- project as an LNG offtake customer.”™
ity of 16.45mn tpy.
The latest SPA is also notable because Shell
was previously a partner in Lake Charles LNG
but pulled out around two years ago, when the
LNG market had taken a knock owing to the
coronavirus (COVID-19) pandemic.
Energy Transfer anticipates reaching a final
investment decision (FID) on Lake Charles by

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