Lake Charles LNG Customers Urge DOE for License Decision Soon

Customers of the proposed Lake Charles LNG export terminal are urging the US DOE to issue a new export license soon to enable a final investment decision according to S&P Global. Letters of support from customers including Shell, EQT and South Korea's SK Gas have been submitted to the agency.

• Energy Transfer is seeking an "expedited consideration" of the new export authorization filing after the US DOE previously denied the request for a three-year extension of its Lake Charles LNG project.

• The three-year extension was needed due to unplanned delays and "severe shortages" of equipment needed for the build according to Energy Transfer. The developer has said it is not able to meet the existing deadline to begin LNG exports by December 2025.
• "We fear that the Lake Charles LNG project will not only be delayed, but ultimately cancelled if the DOE does not promptly approve this export authorization, leaving its planned buyers without their contracted LNG supply," wrote Jill Davies at Shell NA LNG.
• Energy Transfer have already secured long term offtake deals covering 7.9m tons of LNG and almost 50% of the proposed 16.5m mt/yr output.