Update to Lake Charles Liquefaction Project
Aug 8th 2013 2:36PM
Updated Aug 8th 2013 2:38PM
Update to Lake Charles Liquefaction Project
DALLAS--(BUSINESS WIRE)-- Lake Charles Exports, LLC ("LCE"), a jointly-owned subsidiary of BG Group plc ("BG Group") and Southern Union Company ("SUG"), a joint venture owned by Energy Transfer Equity, L.P. (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP) (collectively, "Energy Transfer"), has received an order from the Department of Energy conditionally granting authorization to export liquefied natural gas to non-free trade agreement nationsfrom the existing LNG import terminal owned by Trunkline LNG Company, LLC (a wholly-owned subsidiary of Energy Transfer) which is located in Lake Charles, Louisiana. LCE previously received approval to export LNG from the facility to FTA countries on July 22, 2011.
Energy Transfer and BG Group, through their respective subsidiaries Trunkline LNG Export, LLC, Trunkline LNG Company, LLC and BG LNG Services, LLC, have agreed on preliminary terms to jointly develop an LNG liquefaction project at the facility.
The potential project will entail the construction of three liquefaction trains with a total capacity of 15 million metric tonnes of LNG per annum and utilize the existing LNG storage and marine berthing facilities.
BG Group will have exclusive rights to the full export capacity (with renewal rights) on a tolling basis and oversee the design and construction management of the potential project. Additionally, BG Group will continue to retain contractual rights for import capacity of the facility throughout the term of the potential project.
Further, to facilitate BG Group's sourcing of natural gas for the potential project, Trunkline Gas Company, LLC (also a wholly-owned subsidiary of Energy Transfer) will provide BG Group with pipeline transportation for the potential project's upstream natural gas requirements.
The Front End Engineering & Design Study for the potential project has been awarded. SUG has been participating in the Federal Energy Regulatory Commission's mandatory pre-filing process and expects to file a formal application for Section 3 authorization under the Natural Gas Act in or before the first quarter of 2014.
Pending final investment decisions from both Energy Transfer and BG Group, Energy Transfer will complete financing for the potential project and begin construction in mid-2015, with an anticipated project in-service date in mid-2019.
Energy Transfer Partners, L.P.
Energy Transfer Equity, L.P. (NYS: ETE) is a master limited partnership which owns the general partner and 100% of the incentive distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYS: ETP) and approximately 99.7 million ETP common units; and owns the general partner and 100% of the IDRs of Regency Energy Partners LP (NYS: RGP) and approximately 26.3 million RGP common units. The Energy Transfer family of companies owns more than 71,000 miles of natural gas, natural gas liquids, refined products, and crude pipelines. For more information, visit the Energy Transfer Equity, L.P. website at www.energytransfer.com.
BG Group plc
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Among those is the risk that the anticipated benefits from the proposed transaction cannot be fully realized. An extensive list of factors that can affect future results are discussed in the Partnerships' Annual Reports on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnerships undertake no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our website at www.energytransfer.com.
Brent Ratliff, 214-981-0700
Granado Communications Group
Vicki Granado, 214-599-8785
KEYWORDS: United States North America Louisiana Texas
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