Who Wants an LNG Facility, Energy Transfer Asks

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land Texas)

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Summary

After failing to reach a final investment decision, Energy Transfer said it was open to third-party development for Lake Charles LNG. The company remains open to playing a supply-side role.

Third Party Could Take Lake Charles LNG

Energy Transfer Partners in a filing with U.S. federal regulators said it was open to discussing opportunities for a third party to take over development of the Lake Charles LNG facility after it failed to secure adequate funding.

Energy Transfer announced plans in December to suspend efforts to develop the proposed Lake Charles LNG facility in Louisiana to focus more on its midstream assets. The company applied to the U.S. Federal Energy Regulatory Commission (FERC) for permission to construct the plant in 2012.

Initially authorized for construction three years after its FERC application, Energy Transfer applied for successive extensions. The most recent extension came in May, pushing the in-service date to 2031, a significant slippage.

In a filing Thursday with the Securities and Exchange Commission, Energy Transfer suggested the fate of the terminal may not yet be determined.

"Transfer is not warranted but we remain open to discussions with third parties who may have an interest in developing the project," the filing read. "In the event that a third party assumes the development of the project, it is unlikely that Energy Transfer would commit capital to the project."

The company did say, however, that it would be interested in providing midstream capacity to a third party under a long-term agreement to facilitate natural gas supply for the project. Energy Transfer said it owns and operates midstream, treatment and processing facilities that can handle about 13.5 billion cubic feet per day (Bcf/d) in natural gas.

If built, Lake Charles would have a nameplate capacity of 5.5 million metric tons per annum (MTPA) of LNG. That would have rivaled Sabine Pass, the largest U.S. facility of its kind with a current nameplate capacity of 5.2 MTPA.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more by viewing the related project reports.

Elsewhere, Energy Transfer said "several" of the offtake commitments for Lake Charles were suspended because of the lack of an FID.

"Other LNG offtake agreements that have not been terminated could be assumed by a third party which continues the development of the project," the company said.

U.S. Still on Top with LNG, Energy Transfer Revenue Up

The United States remains the world leader in exports of LNG, helping to support U.S. President Donald Trump's ambition of maintaining the nation's position as a global superpower. On Monday, IIR Energy in its NATGAS Today report found that U.S. export terminals received 19.2 billion cubic feet of feed gas for processing into liquids, well above federal estimates.

Levels were supported by the commissioning of the Golden Pass facility in Texas.

Energy Transfer reported net revenues of $25.3 billion for the fourth quarter, compared to $19.5 billion during the same period in 2025.

Net income of $1.2 billion was down from the $1.5 billion realized during the fourth quarter of 2025. Capital spending for the fourth quarter was $1.4 billion. The company pegged full-year 2026 spending at between $5 billion and $5.5 billion, with most of that targeted for its natural gas networks.

By the Numbers

• $5 billion in capex for Energy Transfer
• 13.5 Bcf/d in gas capacity available
• 10.3% increase in LNG exports to 2027

Key Takeaways

• Energy Transfer open to third-party involvement
• Company could still be a supplier
• Lack of FID could seal fate for Lake Charles LNG

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).