Energy Transfer Takes Over Lake Charles Project as Shell Exits

By Colin Kellaher

Energy Transfer LP on Monday said it will take over development of the Lake Charles LNG export project after Royal Dutch Shell PLC pulled out of a planned equity investment.

Energy Transfer said it will continue the development of the project and evaluate various alternatives, including bringing in one or more equity partners and reducing the size of the project to two trains from three trains.

The proposed 50-50 project between Shell and Energy Transfer calls for the conversion of Energy Transfer's existing import terminal in Lake Charles, La., to an LNG export facility.

Shell last week said it was reducing its 2020 capital spending to a maximum of $20 billion from a planned level of around $25 billion, suspending its share buyback program and cutting operating costs by $3 billion to $4 billion over the next 12 months in a bid to boost its balance sheet amid a coronavirus-induced crash in oil prices.

The U.K. oil major on Monday said it will continue to support Energy Transfer with the bidding process for the engineering, procurement and construction contract, and will then plan a phased handover of the project's remaining activities.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

March 30, 2020 11:18 ET (15:18 GMT)

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