Energy Transfer, Shell Release Full Commercial Tender for Lake Charles LNG Project

Energy Transfer LP announced today that a comprehensive commercial tender package has been issued to engineering, procurement and construction (EPC) contractors to submit final commercial bids for the proposed Lake Charles LNG liquefaction project being developed by Energy Transfer and Shell US LNG, LLC (Shell). The project, if sanctioned by Energy Transfer and Shell, would modify Energy Transfer’s existing LNG import facility located in Lake Charles, Louisiana to add LNG liquefaction capacity of 16.45 million tonnes per annum (MTPA) for export to global markets. The commercial bids are expected to be received in the second quarter of 2020.

The commercial tender expands on the invitation to tender (ITT) announced in May 2019 that focused on the technical scope of project, specifically the contractors’ verification of the engineering and design of the proposed liquefaction facility. The commercial tender invites the EPC contractors to develop a comprehensive commercial bid for the lump sum turnkey contract based on a fully developed scope related to design, engineering, technical and safety specifications for the construction, commissioning and start-up of the proposed Lake Charles LNG project. The commercial tender also requires the submission by the contractors of a fully developed execution plan and completion schedule.

“This is an important step in the continued development of this LNG project with Shell,” said Tom Mason, President of Energy Transfer LNG. “This project capitalizes on repurposing existing brownfield regas assets to achieve cost savings in the construction of the liquefaction facility. The project will also benefit from the unique strength of Energy Transfer as a leading natural gas pipeline operator with extensive connectivity to the Lake Charles facility.”

“The commercial tender represents another important milestone in our phased approach to developing a credible and safe LNG project for Shell and Energy Transfer,” said Frederic Phipps, Shell, Vice President of Lake Charles. “We look forward to continue leveraging our global experience in LNG development and build on our positive collaboration with EPC contractors to drive value and competitiveness throughout the bid process.”

Shell will act as the Project Lead prior to the companies reaching a Final Investment Decision (FID), and if sanctioned, as Construction Manager and Operator of the facility. Energy Transfer will act as Site Manager and Project Coordinator prior to FID.

Source: Energy Transfer LP
Date: Dec 3, 2019