Energy Transfer LP's subsidiary, Energy Transfer LNG Export, LLC, has entered into a Heads of Agreement (HOA) with MidOcean Energy for the joint development of the Lake Charles LNG project. MidOcean Energy is an LNG company formed and managed by EIG Global Energy Partners.
Under the HOA, MidOcean would commit to funding 30% of the construction costs for the Lake Charles LNG project and would be entitled to receive 30% of the LNG production, equating to approximately 5.0 million tonnes per annum. MidOcean will also have the option to arrange gas supply for its share and commit to long-term gas transportation on Energy Transfer pipelines.
This agreement provides a non-binding framework for major terms and is a significant catalyst towards reaching a positive final investment decision (FID) for the Lake Charles LNG project. The partnership leverages MidOcean's LNG experience and strengthens Energy Transfer's existing relationship with EIG.
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