Shell has decided to withdraw from the proposed 16.5 Mt/year Lake Charles LNG project in Lake Charles, Louisiana (United States), in which it holds 50%, citing adverse market conditions. The group will support its partner, the US pipeline company Energy Transfer that owns the remaining 50%, in the ongoing bidding process for the engineering, procurement, and construction (EPC) contract. Energy Transfer will then take over as the project developer.
The proposed liquefaction plant will be located on the site of the existing 24 bcm/year (18 Mt/year) LNG import and regasification terminal in Lake Charles, owned and operated by Energy Transfer. It will use the existing LNG storage and marine berthing facilities and will include the construction of three 5.5 Mt/year liquefaction trains. The project was approved by the US Federal Energy Regulatory Commission (FERC) in December 2015. Shell entered the project in 2016, when it took over BG Group. In December 2019, partners issued a commercial tender package to EPC contractors, expecting to receive bids in the second quarter of 2020. The FID is still pending (expected in 2020) and the project is not expected to be commissioned before 2024-2025.
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