Lake Charles LNG Export Project Files FERC Application
HOUSTON -- March 25, 2014
BG Group (LSE: BG.L) announced today that Trunkline LNG Company, LLC, and
Trunkline LNG Export, LLC, each a wholly-owned subsidiary of Energy Transfer
Equity, L.P. (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP)
(collectively, “Energy Transfer”), have filed an application with the Federal
Energy Regulatory Commission (FERC) seeking the Commission’s authorization for
the siting, construction, ownership and operation of the proposed Lake Charles
LNG Export project.
The FERC filing represents the culmination of significant front-end
engineering design (FEED) work and pre-filing consultations with the FERC and
other federal, state and local agencies that have been underway since
mid-2012. Pending final investment decisions and the receipt of all necessary
approvals expected in 2015, construction will start shortly afterwards, with
first LNG exports anticipated in the second quarter of 2019.
In August 2013 the U.S. Department of Energy conditionally granted
authorization to export up to 2 billion cubic feet per day (or approximately
15 million metric tonnes per annum) of LNG from the existing Trunkline LNG
import terminal to non-free trade agreement nations.
The proposed project is being developed to liquefy domestic supplies of
natural gas for export to meet growing global demand for LNG. Exporting LNG to
world markets is expected to provide economic and employment related benefits
for the U.S., including approximately 250 operational positions and several
thousand jobs during the proposed project’s construction phase.
The proposed project will include the construction of three liquefaction
trains and use the existing LNG storage and marine berthing facilities owned
by Trunkline LNG Company, LLC. Energy Transfer has secured all property rights
required for the site of the proposed liquefaction facility.
Energy Transfer will own and finance the proposed facility and BG Group is
responsible for the offtake. BG Group will also select the engineering,
procurement and construction contractor and manage construction. Upon
completion, BG Group will operate the proposed facility under a long-term
agreement with Energy Transfer. Trunkline Gas Company, LLC (a wholly-owned
subsidiary of Energy Transfer), will provide pipeline transportation services
to supply natural gas to the proposed facility.
Notes to Editors:
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad
portfolio of business interests focused on exploration and production and
liquefied natural gas. Active in more than 20 countries on five continents, BG
Group combines a deep understanding of gas markets with a proven track record
in finding and commercializing reserves.
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