FERC Nod for Lake Charles LNG project
BG Group today announced that the Lake Charles LNG export project has received approval from the US Federal Energy Regulatory Commission (FERC) to construct and operate a natural gas liquefaction and export facility in Lake Charles, Louisiana.
FERC approval is the key remaining regulatory consent for the Lake Charles LNG project, which BG Group (BRGXF) is developing with Energy Transfer Equity LP (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP). 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 US Department of Energy for the export of up to 2 billion cubic feet of natural gas per day or approximately 15 million metric tons of LNG per annum.
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.
Helge Lund, BG Group Chief Executive, commented, "We are pleased to receive the approval from FERC, an important milestone as we progress the Lake Charles project towards a final investment decision. By utilising a brownfield site, and the ready supply of gas from the US grid, Lake Charles LNG offers one of the largest and most competitive new LNG supply options in the marketplace."
