Energy Transfer LP and MidOcean Energy, a liquefied natural gas company managed by EIG Global Energy Partners, have announced the signing of a Heads of Agreement for the joint development of the Lake Charles LNG project. The agreement was signed by Energy Transfer’s subsidiary, Energy Transfer LNG Export, LLC, and outlines key terms for collaboration between the two parties.
Under the non-binding HOA, MidOcean would contribute 30 percent of the project’s construction costs and receive a corresponding 30 percent share of LNG production—approximately 5.0 million tonnes per annum. The agreement also grants MidOcean the option to arrange its own gas supply for its portion of the output and includes a commitment to long-term gas transportation on Energy Transfer’s pipeline network.
The terms outlined in the HOA are contingent upon both parties reaching a final investment decision and meeting other customary conditions precedent.
Tom Mason, president of Energy Transfer LNG, expressed confidence in the partnership:“We are pleased to have MidOcean partner with us on our Lake Charles LNG project and we believe its participation will provide a significant catalyst towards reaching positive FID. MidOcean’s management team brings a wealth of LNG experience to the project. In addition, Energy Transfer and EIG already have an established relationship that will only be strengthened through this transaction.”
De la Rey Venter, CEO of MidOcean, highlighted the strategic value of the agreement:
“This agreement has the potential to transform MidOcean’s portfolio, providing a material volume of advantaged Atlantic Basin supply. This complements our current assets, which are all located in the Asia-Pacific Basin. Geographical diversity is a key enabler for value delivery from an LNG portfolio. MidOcean considers Lake Charles LNG to be one of the most advantaged US LNG projects under development. We look forward to a deep and fruitful multi-decade partnership with Energy Transfer.”
Should the project proceed to FID, the Lake Charles LNG export facility would be built on the site of an existing brownfield regasification terminal. The facility would utilise existing infrastructure, including four LNG storage tanks and two deep-water berths, as well as benefit from direct connectivity to Energy Transfer’s Trunkline pipeline system. This system links to multiple intrastate and interstate pipelines, providing access to major U.S. natural gas basins such as the Haynesville, Permian, and Marcellus.
Energy Transfer continues to be a key player in the US energy landscape, with a comprehensive presence across all major production regions. The collaboration with MidOcean Energy marks another step in expanding its LNG capabilities and leveraging strategic infrastructure to meet growing global energy demand.
For more information visit www.energytransfer.com
