KTJV, a KBR and Technip Energies joint venture, has been selected by Lake Charles LNG Export, a subsidiary of Energy Transfer LP, for its Lake Charles LNG project. Under the terms of the agreement, KTJV will provide engineering, procurement, construction management, construction, commissioning, startup, and other related services, subject to Lake Charles LNG’s decision to issue a notice to proceed with the project.
The project would transform Energy Transfer’s existing import facility into a world-class LNG export facility to meet the world’s growing LNG and energy security demands. The conversion would include the delivery of three liquefaction trains and modifications to existing storage and dock facilities designed to enable the export of 16.45 metric tons per annum of LNG.
“KBR is proud to work with Energy Transfer and Lake Charles LNG to support the development of this world-class LNG facility alongside our joint venture partner,” said Stuart Bradie, KBR president and CEO. “Lake Charles LNG will help bolster global energy security and it will be designed to be one of the most efficient and cleanest operating facilities in the United States. Lake Charles LNG is yet another example of how we are committed to helping our clients accomplish their business objectives in line with our strategy and lower-risk business model.”
Lake Charles LNG project received approval from FERC on 5 December 2019 for a 5-year extension to build the liquefaction and export facility. The project is fully permitted for three 5.5-mtpa liquefaction trains which will use existing infrastructure and will add 240 acres to Lake Charles LNG’s overall footprint which will allow for the development of the new portion of the facility.
“Lake Charles LNG is pleased to obtain the commitment of two world-class companies to be the engineering, procurement, and construction contractor for our liquefaction project,” said Tom Mason, president of Lake Charles LNG. “The structure of the contract provides alignment between KTJV and Lake Charles LNG to achieve a high-quality, cost-effective project. Our determination to issue a notice to proceed under the contract will be subject to our making a final investment decision to proceed with the project, which will be based upon obtaining commercial offtake commitments and third-party equity sufficient to satisfy our internal objectives. We believe that our alignment with KTJV is one more positive step in our continuing progress on the project.”
Lake Charles LNG has previously announced heads of agreement for the offtake of LNG with Chesapeake Energy, Guvnor, Shell, China Gas, and SK Gas.
