Dallas-based Energy Transfer Partners announced today its subsidiary, Lake Charles LNG Export Company, LLC, has entered into a Memorandum of Understanding with South Korea-based Korea Gas Corporation (KOGAS) to study the feasibility of joint participation in the Lake Charles LNG Liquefaction Project. Houston-based BG LNG Services, LLC, a subsidiary of Shell, is also participating in the study of the project under consideration.
The Lake Charles LNG facility in Lake Charles, LA is owned 60 percent by Energy Transfer Equity and 40 percent by Energy Transfer Partners. The liquefaction project under consideration by the parties will utilize Energy Transfer’s existing regasification import facility to accommodate the development of the liquefaction project. The non-binding MOU signed yesterday in Washington, D.C., will allow the parties to study the economics of the project, the engineering, procurement and construction agreement for the project, and the feasibility of sourcing and marketing domestically produced natural gas to export as LNG.
The 440-acre site is located close to Henry Hub with access to many of the largest natural gas production areas in the United States, and is connected to Energy Transfer Partners’ Trunkline Gas Pipeline System, a more than 2,200-mile natural gas pipeline system that interconnects with more than a dozen interstate and intrastate pipelines.