Energy Transfer Signs Agreement With MidOcean Energy to Jointly Develop Its Lake Charles LNG Export Facility
Energy Transfer (NYSE: ET) has announced a significant partnership with MidOcean Energy for the joint development of its Lake Charles LNG export facility. Under the Heads of Agreement (HOA), MidOcean will fund 30% of construction costs and receive 30% of LNG production (approximately 5.0 million tonnes per annum).
The agreement includes provisions for MidOcean to arrange gas supply for its share of LNG production and commit to long-term gas transportation on Energy Transfer pipelines. The project will utilize existing infrastructure, including four LNG storage tanks, two deep water berths, and connection to Energy Transfer's Trunkline pipeline system, providing access to multiple natural gas producing basins.
The partnership's execution remains subject to both parties taking a positive final investment decision (FID) and meeting other conditions precedent. The Lake Charles LNG facility will be constructed on an existing brownfield regasification facility site, leveraging connections to major production basins including Haynesville, Permian, and Marcellus Shale.
Energy Transfer (NYSE: ET) ha annunciato una partnership significativa con MidOcean Energy per lo sviluppo congiunto del suo impianto di esportazione di LNG a Lake Charles. In base all'Accordo di Principio (HOA), MidOcean finanzierà il 30% dei costi di costruzione e riceverà il 30% della produzione di LNG (circa 5,0 milioni di tonnellate all'anno).
L'accordo include disposizioni per permettere a MidOcean di organizzare la fornitura di gas per la sua quota di produzione di LNG e di impegnarsi nel trasporto di gas a lungo termine attraverso i gasdotti di Energy Transfer. Il progetto utilizzerà infrastrutture esistenti, tra cui quattro serbatoi di stoccaggio di LNG, due banchine in acque profonde e la connessione al sistema di gasdotti Trunkline di Energy Transfer, fornendo accesso a più bacini di produzione di gas naturale.
La realizzazione della partnership è soggetta a entrambe le parti che prendano una decisione finale di investimento (FID) positiva e soddisfino altre condizioni preliminari. L'impianto di LNG di Lake Charles sarà costruito su un sito di rigassificazione brownfield esistente, sfruttando le connessioni con i principali bacini di produzione, tra cui Haynesville, Permian e Marcellus Shale.
Energy Transfer (NYSE: ET) ha anunciado una asociación significativa con MidOcean Energy para el desarrollo conjunto de su instalación de exportación de LNG en Lake Charles. Según el Acuerdo de Principio (HOA), MidOcean financiará el 30% de los costos de construcción y recibirá el 30% de la producción de LNG (aproximadamente 5,0 millones de toneladas por año).
El acuerdo incluye disposiciones para que MidOcean organice el suministro de gas para su parte de la producción de LNG y se comprometa al transporte de gas a largo plazo a través de los gasoductos de Energy Transfer. El proyecto utilizará infraestructura existente, incluidos cuatro tanques de almacenamiento de LNG, dos muelles en aguas profundas y la conexión al sistema de gasoductos Trunkline de Energy Transfer, proporcionando acceso a múltiples cuencas productoras de gas natural.
La ejecución de la asociación está sujeta a que ambas partes tomen una decisión final de inversión (FID) positiva y cumplan con otras condiciones previas. La instalación de LNG de Lake Charles se construirá en un sitio de regasificación brownfield existente, aprovechando las conexiones con las principales cuencas de producción, incluidas Haynesville, Permian y Marcellus Shale.
Energy Transfer (NYSE: ET)는 MidOcean Energy와 함께 Lake Charles LNG 수출 시설의 공동 개발을 위한 중요한 파트너십을 발표했습니다. 합의서(Heads of Agreement, HOA)에 따라 MidOcean은 건설 비용의 30%를 자금 지원하고 LNG 생산의 30%를 받을 것입니다(연간 약 500만 톤).
이 계약에는 MidOcean이 LNG 생산에 대한 자신의 몫의 가스 공급을 조정하고 Energy Transfer의 파이프라인을 통한 장기 가스 운송에 대한 의무를 포함하고 있습니다. 이 프로젝트는 기존 인프라를 활용하여 네 개의 LNG 저장 탱크, 두 개의 심해 부두 및 Energy Transfer의 Trunkline 파이프라인 시스템과의 연결을 포함하여 여러 천연 가스 생산 분지에 접근할 수 있습니다.
파트너십의 실행은 양측이 긍정적인 최종 투자 결정(FID)을 내리고 기타 선행 조건을 충족하는 것에 달려 있습니다. Lake Charles LNG 시설은 기존의 브라운필드 재기화 시설 부지에 건설되며, Haynesville, Permian 및 Marcellus Shale을 포함한 주요 생산 분지와의 연결을 활용합니다.
Energy Transfer (NYSE: ET) a annoncé un partenariat significatif avec MidOcean Energy pour le développement conjoint de son installation d'exportation de LNG à Lake Charles. Selon le Heads of Agreement (HOA), MidOcean financera 30 % des coûts de construction et recevra 30 % de la production de LNG (environ 5,0 millions de tonnes par an).
Le contrat comprend des dispositions permettant à MidOcean d'organiser l'approvisionnement en gaz pour sa part de production de LNG et de s'engager à long terme dans le transport de gaz via les pipelines d'Energy Transfer. Le projet utilisera l'infrastructure existante, y compris quatre réservoirs de stockage de LNG, deux quais en eau profonde et la connexion au système de pipelines Trunkline d'Energy Transfer, offrant un accès à plusieurs bassins de production de gaz naturel.
L'exécution du partenariat est soumise à ce que les deux parties prennent une décision finale d'investissement (FID) positive et remplissent d'autres conditions préalables. L'installation de LNG de Lake Charles sera construite sur un site de regazéification brownfield existant, tirant parti des connexions avec les principaux bassins de production, y compris Haynesville, Permian et Marcellus Shale.
Energy Transfer (NYSE: ET) hat eine bedeutende Partnerschaft mit MidOcean Energy für die gemeinsame Entwicklung seiner LNG-Exportanlage in Lake Charles angekündigt. Laut dem Heads of Agreement (HOA) wird MidOcean 30% der Baukosten finanzieren und 30% der LNG-Produktion erhalten (etwa 5,0 Millionen Tonnen pro Jahr).
Die Vereinbarung enthält Bestimmungen, die es MidOcean ermöglichen, die Gasversorgung für seinen Anteil an der LNG-Produktion zu organisieren und sich langfristig zum Gastransport über die Pipelines von Energy Transfer zu verpflichten. Das Projekt wird bestehende Infrastruktur nutzen, einschließlich vier LNG-Speichertanks, zwei Tiefwasseranleger und die Anbindung an das Trunkline-Pipelinesystem von Energy Transfer, das Zugang zu mehreren Erdgasproduktionsbecken bietet.
Die Umsetzung der Partnerschaft steht unter dem Vorbehalt, dass beide Parteien eine positive endgültige Investitionsentscheidung (FID) treffen und andere Voraussetzungen erfüllen. Die LNG-Anlage in Lake Charles wird auf einem bestehenden Brownfield-Standort für die Regasifizierung gebaut, wobei Verbindungen zu wichtigen Produktionsbecken wie Haynesville, Permian und Marcellus Shale genutzt werden.
- Strategic partnership securing 30% project funding from experienced LNG investor
- Utilization of existing infrastructure reducing development costs
- Access to multiple major gas basins through established pipeline network
- Potential for long-term gas transportation revenue on ET pipelines
- Project still requires final investment decision
- Remaining 70% of LNG production capacity needs to be contracted
- Subject to various regulatory approvals and market conditions
Insights
Energy Transfer's Heads of Agreement with MidOcean Energy represents a strategic development for the Lake Charles LNG project. The agreement's structure - with MidOcean funding 30% of construction costs for 30% of production capacity (approximately
This HOA, while non-binding, establishes a framework that addresses multiple components critical for project advancement: capital allocation, production entitlement, and pipeline utilization commitments. The arrangement for MidOcean to commit to long-term gas transportation on Energy Transfer's pipelines creates additional revenue potential beyond the LNG facility itself, leveraging ET's extensive midstream network.
The Lake Charles project has inherent competitive advantages as a brownfield development, capitalizing on existing infrastructure including four LNG storage tanks, two deep water berths, and established pipeline connectivity. This brownfield approach typically offers substantial cost efficiencies versus greenfield alternatives. Direct pipeline access to multiple production basins (Haynesville, Permian, Marcellus) provides supply optionality that enhances project economics.
While this partnership represents meaningful progress, several critical milestones remain before reaching final investment decision (FID), including regulatory approvals and securing offtake arrangements for the remaining production capacity. MidOcean's participation, backed by EIG's institutional investment expertise, adds credibility to the project's viability and potentially accelerates the path to FID.
This partnership strategically positions Energy Transfer to advance its Lake Charles LNG ambitions with reduced capital intensity. By bringing in MidOcean Energy to fund
The agreement's structure offers mutual benefits beyond capital sharing. For Energy Transfer, MidOcean's commitment to long-term gas transportation on ET's pipeline network strengthens utilization of existing midstream assets, creating complementary revenue streams and operational synergies. The vertical integration potential - linking ET's extensive pipeline network with LNG export capabilities - enhances the company's value proposition across the natural gas value chain.
For MidOcean, this arrangement delivers portfolio diversification through Atlantic Basin exposure that balances their Asia-Pacific assets. This geographical diversification enables optimization across global LNG markets, potentially capturing regional price differentials and enhancing supply reliability.
The Lake Charles project's brownfield nature provides material advantages in development timeline, permitting processes, and capital efficiency. By leveraging existing infrastructure and pipeline connectivity, the project has potential for faster time-to-market than competing greenfield developments. The connectivity to multiple production basins further strengthens supply security and pricing leverage.
While this HOA represents a preliminary framework rather than a binding commitment, it nonetheless signals substantial progress toward potential FID and demonstrates market confidence in the project's fundamentals.
MidOcean Energy to Fund
“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,” said Tom Mason, President of Energy Transfer LNG. “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, said: “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
If Energy Transfer LNG reaches a positive FID, the LNG export facility would be constructed on the existing brownfield regasification facility site and would capitalize on four existing LNG storage tanks, two deep water berths and other LNG infrastructure. Lake Charles LNG would also benefit from its direct connection to Energy Transfer’s existing Trunkline pipeline system that in turn provides connections to multiple intrastate and interstate pipelines. These pipelines allow access to multiple natural gas producing basins, including the Haynesville, the Permian and the Marcellus Shale. Energy Transfer is one of the largest and most diversified midstream energy companies in
Forward Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control, including (i) Energy Transfer’s ultimate financial investment decision with respect to the Lake Charles LNG facility, (ii) whether Lake Charles LNG Export Company, LLC will receive certain regulatory approvals, (iii) Lake Charles LNG’s ability to secure long-term contractual arrangements for the remaining volume of offtake of LNG which in turn will be dependent upon supply and demand factors affecting the price of LNG in foreign markets, and (iv) the financial viability of the LNG export project, which is dependent upon a number of other factors. An extensive list of additional factors that can affect the LNG export project and Energy Transfer’s future results are discussed in the Energy Transfer’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
About Energy Transfer
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in
About MidOcean Energy
MidOcean Energy, an LNG company formed and managed by EIG, seeks to build a diversified, resilient, cost- and carbon-competitive global LNG portfolio. It reflects EIG’s belief in LNG as a critical element of a lower carbon, competitive and more secure global energy system. MidOcean Energy is headed by De la Rey Venter, a 27-year industry veteran who has held a variety of senior executive roles, including Global Head of LNG for Shell Plc. MidOcean benefits from strategic partnerships with Aramco and Mitsubishi Corporation, among other blue-chip investors.
About EIG
EIG is a leading institutional investor in the global energy and infrastructure sectors with
For additional information, please visit MidOcean Energy’s website at www.midoceanenergy.com or EIG’s website at www.eigpartners.com.
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Energy Transfer Contact Information
Media Relations
Vicki Granado or Jeff Tieszen
214-840-5820
media@energytransfer.com
Investor Relations
Bill Baerg, Brent Ratliff or Lyndsay Hannah
214-981-0795
EIG/MidOcean Contact Information
FGS Global
Kelly Kimberly / Brandon Messina
+1 212-687-8080
EIG@fgsglobal.com
Source: Energy Transfer LP
FAQ
What is the ownership structure of the Lake Charles LNG project between Energy Transfer (ET) and MidOcean?
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What conditions need to be met for the ET-MidOcean Lake Charles LNG partnership to proceed?
