Trunkline LNG Moves Forward with Phase II LNG Terminal and Pipeline Expansion

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Trunkline LNG Company (Houston, Texas) has announced a second expansion phase for its Lake Charles LNG receiving and re-gasification terminal. Trunkline has entered into an agreement with BG LNG Services LLC, a subsidiary of GB Group of the United Kingdom, where BG has contracted for the total 800-mmscfd capacity of the phase II expansion (PEC 02005076).

The phase II expansion will bring the total daily re-gasification capacity of the Lake Charles facility to 2.1 Bcf/d. The Phase I expansion (PEC 02004660), presently being constructed will increase the terminal's daily re-gasification capacity from its current 630 mmscfd to 1.3 Bcf/d when completed in late 2005 or early 2006.

Upon completion of both phases, BG LNG will have 100 percent of the 9 Bcf of storage and 2.1 Bcf/d of the send-out capacity under contract until 2023. To support the higher second phase send-out capacity Trunkline will construct a new 23-mile 30" diameter natural gas transmission pipeline running along its current right-of-way from the terminal and will interconnect with Trunkline Gas Company's main transmission pipeline (PEC 02005332).

CB&I (The Woodlands Texas) currently has the E+P+C contract for the phase I expansion and will be a prime bidder for the phase II contract to be let this summer. The $125 million phase II is expansion is expected to be completed in mid-2006 and will make the Lake Charles LNG Terminal by far the largest LNG receiving terminal in North America for some time to come. Trunkline LNG is a subsidiary of Southern Union Company (NYSE:SUG)(Wilkes-Barre, Pennsylvania).