Energy Transfer, MidOcean Agree to Jointly Develop Lake Charles LNG
(P&GJ) — Energy Transfer LP has signed a Heads of Agreement (HOA) with MidOcean Energy to jointly develop the Lake Charles LNG export facility in Louisiana.
Under the non-binding framework, MidOcean would fund 30% of construction costs and receive a corresponding 30% share of liquefied natural gas production—about 5 million tonnes per year. The agreement also allows MidOcean to arrange its own gas supply and includes a commitment to long-term gas transportation on Energy Transfer’s pipeline network.
The joint development remains subject to a final investment decision (FID) and other closing conditions.
“We are pleased to have MidOcean partner with us on our Lake Charles LNG project and we believe its participation will provide a significant catalyst towards reaching positive FID,” said Tom Mason, President of Energy Transfer LNG. “MidOcean’s management team brings a wealth of LNG experience to the project. In addition, Energy Transfer and EIG already have an established relationship that will only be strengthened through this transaction.”
“This agreement has the potential to transform MidOcean’s portfolio, providing a material volume of advantaged Atlantic Basin supply,” said De la Rey Venter, CEO of MidOcean. “This complements our current assets, which are all located in the Asia-Pacific Basin. Geographical diversity is a key enabler for value delivery from an LNG portfolio. MidOcean considers Lake Charles LNG to be one of the most advantaged US LNG projects under development. We look forward to a deep and fruitful multi-decade partnership with Energy Transfer.”
If the project proceeds, the facility would be built on an existing brownfield regasification site. It would leverage four LNG storage tanks, two deepwater berths, and existing infrastructure. Lake Charles LNG also connects to Energy Transfer’s Trunkline system, providing access to key natural gas-producing regions including the Haynesville, Permian, and Marcellus shales.
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