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Energy Transfer LP has pushed back its targeted final investment decision for the proposed Lake Charles liquefied natural gas export project in Louisiana to the first quarter of 2026 from the end of this year, according to people familiar with the matter.
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The company cited rising costs and the need for more time to finalize contracts as reasons for the delay, according to the people, who asked not to be identified because the discussions about the timeline were private. The pipeline operator has planned for years to expand the existing LNG import terminal at Lake Charles into an export plant.
Energy Transfer didn’t respond to requests for comment via phone and email.
US LNG developers are rushing to line up financing and start construction on projects before the next global supply wave potentially overtakes demand, with BloombergNEF predicting that a glut will emerge by 2027. Qatar is progressing with its own years-long LNG buildout and a massive pipeline expansion by Gazprom PJSC could begin funneling more Russian gas to China by 2031.
Earlier this month, Bloomberg News reported that Energy Transfer was nearing an agreement to sell LNG from Lake Charles to MidOcean Energy, a subsidiary of investment firm EIG Global Energy Partners.
Chevron Corp., China’s ENN Energy Holdings Ltd. and South Korea’s SK Gas Trading LLC are among the companies that have inked long-term deals to buy LNG from Lake Charles. The Louisiana project would have a total capacity of 16.5 million metric tons of per year.
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