Dallas-based Power Switch LP has entered into three long-term offtake liquefied pure gasoline (LNG) agreements for its Lakes Charles LNG undertaking, the corporate mentioned in a information launch.
The three non-binding heads of settlement (HOAs) mix for 3.6 million metric tons each year (mtpa) of LNG to be exported to clients in Asia and the USA. The HOAs are topic to the negotiation and execution of definitive agreements, Power Switch mentioned.
The primary HOA is with an unidentified Japanese consortium for the acquisition of 1.6 mtpa for a 20-year time period, topic to an choice to convert the offtake association to fairness participation offering for a similar quantity of LNG, the information launch mentioned.
The second HOA is for Chesapeake Power Advertising and marketing LLC to produce Lakes Charles LNG with volumes of pure gasoline adequate to supply 1.0 mtpa of LNG for 15 years, after which Gunvor Singapore Pte Ltd would purchase LNG from Chesapeake at a worth listed to the Japan Korea Marker for a interval of 15 years, in accordance with the information launch.
The third HOA is with an unnamed USA buyer and “pertains to a tolling association for 1.0 mtpa for a 15-year time period”, Power Switch mentioned.
“We’re happy with the continued confidence of our clients within the Lake Charles LNG undertaking”, Lake Charles LNG President Tom Mason mentioned. “These HOAs are vital for the profitable growth of the undertaking, together with the continuation of sure pre-FID [final investment decision] work with one among our EPC [engineering, procurement, and construction] contractors.”
The Lake Charles LNG undertaking failed to satisfy the seven-year development deadline of the USA Division of Power (DOE) for LNG export permits. In Could, the DOE denied Power Switch’s request for a three-year extension of the undertaking, saying it didn’t meet its standards for granting second extensions. The corporate requested a rehearing, and in June the DOE mentioned it will not rehear the request, saying it was not satisfied by the corporate’s arguments. Power Switch had sought the extension partly because of a variation within the design of the undertaking to incorporate a serious carbon seize and sequestration (CCS) element, in accordance with an earlier report from Reuters.
In response to the corporate web site, the Lakes Charles undertaking is for the event of a large-scale LNG export facility in Lake Charles, Louisiana situated on the Calcasieu Ship Channel. The undertaking will convert Power Switch’s present Lake Charles LNG import and regasification terminal into an LNG export facility, “offering a value benefit over different proposed LNG tasks on the Gulf Coast”.
The undertaking is absolutely permitted for 3 5.5 mtpa liquefaction trains, which can make the most of present infrastructure. The Lake Charles LNG import and regasification terminal has roughly 15.1 million cubic toes (430,000 cubic meters) of above-ground LNG storage capability, two deepwater docks able to dealing with ships with as much as 7.66 million cubic toes (217,000 cubic meters) of capability, and a deepwater turning basin, in accordance with the corporate web site.
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