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Shell exits proposed Lake Charles LNG project

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LNG Industry,


Shell has announced that, given the current market conditions, it has decided not to proceed with an equity interest in the proposed Lake Charles LNG project.

Accordingly, Energy Transfer will take over as the project developer. In the statement, Shell claims that it will continue to support Energy Transfer with the ongoing bidding process for the engineering, procurement and construction (EPC) contract, and then a phased handover of the project’s remaining activities.

Lake Charles LNG is a proposed 50:50 project between Shell and Energy Transfer that aims to convert Energy Transfer’s existing import terminal into an LNG export plant in Lake Charles, Louisiana. It has a proposed liquefaction capacity of 16.45 million tpy.

Maarten Wetselaar, Director, Integrated Gas and New Energies, Shell, said: “This decision is consistent with the initiatives we announced last week to preserve cash and reinforce the resilience of our business.

“Whilst we continue to believe in the long-term viability and advantages of the project, the time is not right for Shell to invest. Through the transition, we will work closely with Energy Transfer.”

Read the article online at: https://www.lngindustry.com/liquefaction/31032020/shell-exits-proposed-lake-charles-lng-project/

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