Energy Transfer suspends Lake Charles LNG project

(The Center Square) − Energy Transfer LP said it is suspending development of its proposed liquefied natural gas export terminal in southwest Louisiana as it reallocates capital toward a backlog of natural gas pipeline infrastructure projects expected to offer better risk-adjusted returns.In a news release, the company said the continued development of its Lake Charles terminal “is not warranted” at this time. It remains open to discussions with third parties that may be interested in developing the project, the news release said. The company did not immediately respond to requests for further comment.
The Dallas-based midstream operator owns and operates roughly 140,000 miles of pipelines across 44 states and holds ownership interests in Sunoco LP and USA Compression Partners.
The Lake Charles LNG suspension could affect customers including Chevron, which signed a five-year deal with Hungary’s state-owned MVM Group to provide 400 million cubic meters of LNG annually. The gas had been expected to be sourced from the Lake Charles facility under long-term agreements for 3 million tons per year as Hungary seeks to diversify from its primary supplier, Russia.
The terminal, designed to export up to 2.33 billion cubic feet per day once fully built, had been granted additional time to begin exporting LNG to non-free-trade-agreement countries.
U.S. Energy Secretary Chris Wright said the extension was intended to ensure projects are positioned to meet rising global demand for American LNG.

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