Shell and Energy Transfer have issued a commercial tender package to various EPC contractors for the final commercial bids on the proposed Lake Charles LNG liquefaction project. If sanctioned, the project would modify Energy Transfer’s existing LNG import facility in Lake Charles to boost LNG liquefaction capacity of 16.45 mtpa for export to global markets. Commercial bids are expected in 2Q 2020.
The commercial tender will invite 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 project’s construction, commissioning, and start-up. It requires the submission of a fully developed execution plan and completion schedule.
“The commercial tender represents another important milestone in our phased approach to developing a credible and safe LNG projects for Shell and Energy Transfer. 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 final investment decision (FID), and if the project is sanctioned it will serve as construction manager and operator of the facility. Energy Transfer will act as site manager and project coordinator prior to sanction.
“This project capitalizes on repurposing existing brownfield re-gas assets to achieve cost savings in the construction of the liquefaction facility,” Energy Transfer LNG president Tom Mason said.