BG Group Secures OK To Construct US Lake Charles LNG Export Project

By Alex MacDonald

LONDON--U.K. gas major BG Group PLC (BG.LN) said Friday that it has received approval from the U.S. Federal Energy Regulatory Commission to construct and operate a natural gas liquefaction and export facility at the Lake Charles liquefied natural gas export project in Lake Charles, Louisiana.

The approval is key to securing the remaining regulatory consent for the project, which BG Group is developing with Energy Transfer Equity LP (ETE) and Energy Transfer Partners, L.P. (ETP). Energy Transfer owns an existing LNG regasification facility at Lake Charles, which will be converted to a liquefaction facility.

The project has received conditional approval to export of up to 2 billion cubic feet of natural gas a day or about 15 million metric tons of LNG a year.

Final investment decisions from both BG Group and Energy Transfer are expected to be taken in 2016, with construction due to start immediately after a positive decision. First LNG exports are forecast about four years later.

Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

December 18, 2015 02:35 ET (07:35 GMT)

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