Southern Union, BG seek US approval to export LNG from Louisiana terminal
Two energy companies have applied for a US license to export liquefied natural gas (LNG) from their Lake Charles, La. import terminal.
Houston-based Southern Union Co. said it formed a joint venture with British gas major BG Group, asking the US for the right to export more than 2 billion cubic feet/day of natural gas over 25 years.
The company said cost estimates for the project would be between $2 billion and $3 billion.
If approved, the companies would need to modify their import terminal with new equipment to aid in the gas-to-liquids process.
Historically, the US has been an importer of LNG.
But supply is on the upswing with recent shale gas discoveries, leading to increased consideration for export projects.
According to the Houston Chronicle, the Southern/BG proposal is one of nine LNG export projects in North America that is awaiting approval from government regulators.
Southern Union disclosed its application this week as part of its first-quarter earnings release.
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