Energy Transfer Signed Agreement to Develop Lake Charles LNG Export Facility

SEATTLE (Oil Monster): The liquefied natural gas (LNG) company MidOcean and Energy Transfer LP's subsidiary Energy Transfer LNG Export, LLC have signed a Heads of Agreement (HOA) to jointly develop the company's Lake Charles LNG Export Facility.

The agreement states that MidOcean will pay 30% of the building expenses and will be eligible to receive 30% of the LNG production. MidOcean Energy will be able to set up a gas supply for its portion of the LNG production. Additionally, MidOcean will commit to long-term gas transportation on Energy Transfer pipelines. 

Energy Transfer LNG President Tom Mason expressed the company's satisfaction with MidOcean's partnership on the Lake Charles LNG project. According to him, the collaboration will serve as a major impetus for achieving favorable FID.

Using the four existing LNG storage tanks, two deep water berths, and other LNG infrastructure, the LNG export plant would be built on the site of the brownfield regasification project if a positive FID is obtained.

The agreement could change the company's portfolio, according to De la Rey Venter, CEO of MidOcean. He noted that the supply from the Atlantic Basin will supplement its existing holdings, all of which are in the Asia-Pacific Basin.

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