Energy Transfer’s subsidiary, Energy Transfer LNG Export, has penned an agreement related to its Lake Charles LNG project with MidOcean Energy, a liquified natural gas (LNG) company formed and managed by institutional investor EIG Global Energy Partners.
The agreement provides a nonbinding framework of the major terms for the joint development of the Lake Charles LNG project in Louisiana. Under the agreement, MidOcean would commit to fund 30 percent of the construction costs and be entitled to receive 30 percent of the LNG production (approximately 5 million metric tons per year). MidOcean Energy also will have the option to arrange for gas supply for its share of LNG production and commit to long-term gas transportation on Energy Transfer pipelines.
“This agreement has the potential to transform MidOcean’s portfolio, providing a material volume of advantaged Atlantic Basin supply,” said De la Rey Venter, CEO of MidOcean. “This complements our current assets,
