MidOcean to Invest in Lake Charles LNG

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MidOcean to Invest in Lake Charles LNG

Lake Charles LNG owner Energy Transfer LP has agreed non-binding terms for an investment by MidOcean Energy in the planned Louisiana project. Under the heads of agreement (HOA), MidOcean, part of EIG Global Energy Partners, will fund 30 percent of the construction cost. MidOcean will be entitled to receive 30 percent of the liquefied natural […]

Lake Charles LNG owner Energy Transfer LP has agreed non-binding terms for an investment by MidOcean Energy in the planned Louisiana project.

Under the heads of agreement (HOA), MidOcean, part of EIG Global Energy Partners, will fund 30 percent of the construction cost. MidOcean will be entitled to receive 30 percent of the liquefied natural gas (LNG) production. That equates to about 5 million metric tons per annum (MMtpa), according to a joint statement Wednesday.

“The HOA also provides that MidOcean Energy will have the option to arrange for gas supply for its share of LNG production and that MidOcean will commit to long-term gas transportation on Energy Transfer pipelines”, the companies said.

“The obligations of Energy Transfer LNG and MidOcean Energy under the HOA will be subject to both parties’ determination to take a positive final investment decision as well as the satisfaction of other conditions precedent”.

Tom Mason, president of Energy Transfer LNG, said, “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”.

“This agreement has the potential to transform MidOcean’s portfolio, providing a material volume of advantaged Atlantic Basin supply”, said MidOcean chief executive De la Rey Venter. “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”.

Planned to have an export capacity of 16.45 MMtpa, Lake Charles LNG is fully permitted and would be built as a conversion from an existing brownfield regasification site with four LNG storage tanks, according to Energy Transfer.

Meanwhile a decision is pending before the Department of Energy (DOE) on whether to grant a request for an extension of Lake Charles LNG’s deadline to start export.

In 2023 the DOE under the Biden administration denied Energy Transfer’s application to extend to 2028 the 2025 deadline for the project to dispatch its first cargo. Energy Transfer that same year re-filed for an extension, seeking 7 more years from the date of the new requested authorization, presumably 2031.

This month the DOE said it has removed Biden-era restrictions on requests to extend the export commencement deadlines of LNG projects. A project for which such a request is made no longer has to be under construction or has to demonstrate that circumstances outside its control prevented the start of exportation within 7 years.

Instead, the DOE will review requests “on a case-by-case basis”, the DOE said in an online statement April 1, 2025, noting the permitting process is already “extensive”.

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