HOUSTON & DALLAS--(BUSINESS WIRE)--BG Group (LSE: BG.L) and Energy Transfer Equity, L.P. (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP) (collectively, “Energy Transfer”) today announced that the Lake Charles LNG Project has received approval from the US Federal Energy Regulatory Commission (FERC) to site, construct and operate a natural gas liquefaction and export facility in Lake Charles, Louisiana. FERC approval was a key remaining regulatory consent for the Lake Charles LNG Project.
With a conditional authorization from the US Department of Energy to export up to 2 billion cubic feet of natural gas per day (or approximately 15 million metric tons of LNG per annum), the Lake Charles LNG Project is expected to be one of the largest LNG export initiatives in the United States. The technology chosen for the project, which includes aero derivative turbines with selective catalytic reduction, is designed to make it one of the most efficient and cleanest operating LNG facilities in the world, with air emissions expected to be well below US and state limits.
“Our focus is on being a good neighbor in Lake Charles, where we’ll be working in a collaborative manner with local communities to minimize the impacts from construction,” said Jason Klein, General Manager for BG Group’s America Asset. “At the same time, we’re excited about our role in the economic expansion of Southwest Louisiana. Lake Charles LNG has the potential to create several thousand jobs during construction and if fully operational could result in approximately 250 long-term operational positions – sustainable jobs for current and future generations.”
Final investment decisions from both BG Group and Energy Transfer are expected to be made in 2016, with construction to start immediately following a positive decision and first LNG exports anticipated about four years later.
Energy Transfer owns the existing LNG regasification facility in Lake Charles. By taking advantage of a brownfield site that includes LNG tanks and other existing infrastructure, as well as access to a highly developed and liquid gas market, the Lake Charles LNG Project has the capability to be one of the most competitive new supply sources for LNG and would significantly add to BG Group’s global LNG supply portfolio.
Energy Transfer, which will become the largest transporter of natural gas in the United States upon the close of the previously announced transaction with The Williams Companies, Inc., will provide pipeline transportation services on its Trunkline Gas pipeline system sufficient to supply Lake Charles LNG.
BG Group is responsible for selecting the engineering, procurement and construction contractor and managing construction. Upon completion, BG Group would operate and be responsible for the LNG offtake from the facility.
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. For further information visit: www.bg-group.com
Energy Transfer Equity, L.P. (NYSE: ETE) is a master limited partnership which owns the general partner and 100% of the incentive distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN) and approximately 2.6 million ETP Common Units, approximately 81.0 million ETP Class H Units, which track 90% of the underlying economics of the general partner interest and the IDRs of Sunoco Logistics Partners L.P. (NYSE: SXL), and 100 ETP Class I Units. On a consolidated basis, ETE’s family of companies owns and operates approximately 71,000 miles of natural gas, natural gas liquids, refined products, and crude oil pipelines. For more information, visit the Energy Transfer Equity, L.P. web site at www.energytransfer.com.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the United States. ETP’s subsidiaries include Panhandle Eastern Pipe Line Company, LP (the successor of Southern Union Company) and Lone Star NGL LLC, which owns and operates natural gas liquids storage, fractionation and transportation assets. In total, ETP currently owns and operates more than 62,500 miles of natural gas and natural gas liquids pipelines. ETP also owns the general partner, 100% of the incentive distribution rights, and approximately 67.1 million common units in Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. Additionally, ETP owns fuel distribution and retail marketing assets and approximately 50.8% of the limited partner interests in Sunoco LP (formerly Susser Petroleum Partners LP) (NYSE: SUN), a wholesale fuel distributor and convenience store operator. ETP’s general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE). For more information, visit the Energy Transfer Partners, L.P. web site at www.energytransfer.com.
Forward-Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in the ETE’s and ETP’s Annual Reports on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. ETE and ETP undertake no obligation to update or revise any forward-looking statement to reflect new information or events.
