Energy Transfer LP (ET) said Tuesday a tender has been issued to engineering, procurement and construction (EPC) contractors to submit final commercial bids for the proposed Lake Charles LNG liquefaction project, Kallanish Energy reports.
The complex in western Louisiana is being developed by Energy Transfer and Shell US LNG. If the partners agree to proceed, the project would modify Energy Transfer’s existing LNG import facility to add liquefied natural gas liquefaction capacity of 16.45 million tonnes per annum (Mtpa).
Commercial bids are expected to be received in the second quarter of 2020.
The commercial tender expands on the invitation to tender (ITT) announced in May, that focused on the technical scope of the project, specifically the contractors’ verification of the engineering and design of the proposed liquefaction facility.
The commercial tender invites the EPC contractors to develop a commercial bid for the lump sum turnkey contract based on a fully developed scope related to design, engineering, technical and safety specifications for the construction, commissioning and start-up of the proposed complex.
“This is an important step in the continued development of this LNG project with Shell,” said Tom Mason, president of Energy Transfer LNG. “This project capitalizes on repurposing existing brownfield re-gas assets to achieve cost savings in the construction of the liquefaction facility.”
Shell will act as project lead prior to the companies reaching a Final Investment Decision (FID) and, if sanctioned, as construction manager and facility operator. Energy Transfer will serve as site manager and project coordinator prior to FID.
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