Energy Transfer signs preliminary deal to build proposed Louisiana LNG plant

Energy Transfer (NYSE:ET) has signed a preliminary contract with a consortium led by KBR (KBR) and Technip Energies (OTCPK:THNPY) (OTCPK:THNPF) for the construction of its proposed Lake Charles LNG plant in Louisiana, according to a filing with the Federal Energy Regulatory Commission on Thursday.

The contract is contingent on a final investment decision for the proposed 16.5M metric tons/year liquefied natural gas facility; financial terms were not disclosed.

Energy Transfer (ET) has been trying to develop Lake Charles LNG since 2015 but has been unable to secure sufficient customer commitments, and the project has missed two FID targets.

After the Department of Energy in 2023 denied Energy Transfer’s (ET) request for a second extension to export to countries that do not have a free trade agreement with the U.S., the company filed for a new permit.