Energy Transfer Equity and Energy Transfer Partners have signed a project development agreement (PDA) with BG Group to jointly develop the liquefied natural gas (LNG) export project at the existing Trunkline LNG import terminal in Lake Charles, Louisiana.
The US Department of Energy has recently granted conditional authorization to Energy Transfer and BG Group to export from the existing Trunkline LNG import terminal up to 15 million metric tonnes per annum (mtpa) of LNG to non-free trade agreement nations.
The project includes the construction of three liquefaction trains and will use the existing LNG storage and marine berthing facilities owned by Trunkline LNG Company, a subsidiary of Energy Transfer.
Energy Transfer has secured all property rights required for the site of the liquefaction facility.
Energy Transfer said the deal sets out commercial arrangements between the firms and a final investment decision is anticipated in 2015.
Under the deal, Energy Transfer will own and finance the proposed liquefaction plant, and BG will have a long-term tolling agreement with the company for the offtake, even though it may select to assign some of its capacity or offtake to third parties.
Trunkline Gas, a unit of Energy Transfer, will provide pipeline transportation to supply gas to the plant.
BG will oversee engineering and design and manage construction, as well as operate the combined plant and terminal.