Vitality Switch LP has indefinitely paused the under-development Lake Charles LNG mission in Louisiana to refocus funding on pure fuel pipelines.
The pause permits the Dallas, Texas-based firm to “give attention to allocating capital to its important backlog of pure fuel pipeline infrastructure tasks that Vitality Switch believes present superior danger/return profiles”, it mentioned in an announcement on its web site.
“Vitality Switch administration has decided that its continued growth of the mission is just not warranted by Vitality Switch however stays open to discussions with third events who might have an curiosity in creating the mission”.
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Earlier this 12 months the USA Division of Vitality (DOE) granted Vitality Switch’s request to increase the deadline for Lake Charles LNG to begin exports from 2025 to 2031.
Lake Charles LNG is permitted to export a cumulative 851 billion cubic ft a 12 months of pure fuel equal, below two DOE orders initially issued July 2016 and June 2017.
Vitality Switch says the mission, a conversion from an present regasification web site, has all authorizations from the Federal Vitality Regulatory Fee. In September 2024, it awarded an engineering, procurement and building contract to a three way partnership between KBR Inc and Technip Energies NV.
Concurrent with the pause announcement, Vitality Switch mentioned it has elevated the capability of the Transwestern Pipeline’s deliberate Desert Southwest growth mission.
“To satisfy the necessity for extra capability recognized by way of a current open season, the mission’s mainline pipeline diameter might be upsized from 42 inches to 48 inches, which can enhance the mission’s capability to as much as 2.3 billion cubic ft per day, relying on remaining compression configuration”, Vitality Switch mentioned in a separate assertion.
“There may be important demand development within the Desert Southwest area, together with the potential to retire and or convert coal-fired energy vegetation to pure fuel, which may additional profit the mission.
“The final word capability of the Desert Southwest growth mission might be based mostly on market demand”.
Vitality Switch nonetheless expects to place the growth into service by 2029.
“The upsized mission is now anticipated to price as much as roughly $5.6 billion excluding Allowance for Funds Used Throughout Development”, Vitality Switch mentioned. “In consequence, Vitality Switch’s whole development capital expenditures for 2026 are anticipated to extend by roughly $200 million”.
To contact the writer, electronic mail jov.onsat@rigzone.com
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