Shell Exits the Proposed Lake Charles LNG Project
Royal Dutch Shell Plc has announced that it will not proceed with an equity interest in the proposed Lake Charles LNG project in Louisiana. Existing partner Energy Transfer LP will take over as the project developer, and will evaluate various alternatives to advance the project, including the possibility of bringing in one or more equity partners and reducing the size of the project to from 3 trains with a total capacity of 16.45 million tonnes per annum (mtpa) to 2 trains (11.0 mtpa). Shell will continue to support Energy Transfer with the ongoing bidding process for the EPC contract and then plan a phased handover of the project’s remaining activities.
Lake Charles LNG is a proposed 50:50 project between Shell and Energy Transfer that seeks to convert Energy Transfer’s existing LNG import terminal to a 3 train, 16.45 million tonnes per annum (mtpa) LNG export facility. Shell entered the project following its 2016 acquisition of BG Group Plc.