Shell

Shell and pipeline giant Energy Transfer Partners have taken a step toward building a multibillion-dollar liquefied natural gas export terminal in Lake Charles. 

Shell and pipeline giant Energy Transfer Partners have taken a step toward building a multibillion-dollar liquefied natural gas export terminal in Lake Charles. 

The two companies signed an agreement that "provides the framework to further develop a large-scale LNG export facility in Lake Charles," they said in a news release. The partners have started engaging LNG engineering, procurement and contracting firms on the project.

A final investment decision on the project has still not been made. Lake Charles LNG is one of several LNG export projects planned for the southwest Louisiana region. 

The Lake Charles LNG project was given final authorization to export gas in 2016, but the project has not moved forward. Shell acquired BG Group, the developer of the project, that same year, according to the project site.

The project would convert an existing LNG import facility into an export site. If built, the companies said the project will involve 5,000 construction jobs and 200 full-time positions when fully operational.

“Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020’s,” said Frederic Phipps, Shell's vice president for the project.

The agreement announced Monday outlines the commercial terms of the deal. Shell will be project lead and construction manager and operator of the facility. Energy Transfer will act as site manager and project coordinator.

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