U.S. pipeline operator Energy Transfer has secured enough agreements to sell liquefied natural gas to make a final investment decision on its Lake Charles LNG project early next year, an executive said on Wednesday at the Reuters Energy Live conference in Houston.
Energy Transfer has been developing the LNG export facility in Louisiana, with capacity of 16.5 million metric tons per annum. It said last month that it wanted to sell 80% of the project to equity partners.
Marketing has been the most uncertain part of the project, but the work is complete and Energy Transfer has secured enough volume to make the final investment decision early next year, said Amy Chen Davis, vice president of Lake Charles LNG.
Davis said she was not hugely concerned about the possibility of a long-term supply glut in LNG because lower prices often lead to higher demand.
“We can’t underestimate the power of demand catching up to supply,” she said.
(Reporting by Sheila Dang in Houston Editing by Nathan Crooks and David Goodman)