Lake Charles LNG Project Receives FERC approval
BG Group has proposed constructing and operating a natural gas liquefaction and export facility at the brownfield site.
FERC approval is the key remaining regulatory consent for the Lake Charles LNG project, which BG Group is developing with Energy Transfer Equity LP and Energy Transfer Partners, L.P. Energy Transfer owns an existing LNG regasification facility in Lake Charles, which will be converted to a liquefaction facility.
The project has conditional authorization from the U.S. Department of Energy for the export of up to two billion cubic feet of natural gas per day or approximately 15 million metric tons of LNG per year.
Final investment decisions from both BG Group and Energy Transfer are expected to be taken in 2016, with construction to start immediately following a positive decision and first LNG exports anticipated about four years later.
“We are pleased to receive the approval from FERC, an important milestone as we progress the Lake Charles project towards a final investment decision,” said Helge Lund, CEO of BG Group. “By utilizing a brownfield site, and the ready supply of gas from the U.S. grid, Lake Charles LNG offers one of the largest and most competitive new LNG supply options in the marketplace.”
BG Group is responsible for selecting the engineering, procurement, and construction contractor and managing construction of the Lake Charles LNG project. Upon completion, BG Group will operate and be responsible for the LNG offtake from the facility. BG Group plc is active in natural gas business in more than 20 countries on five continents.
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