Shell calls Energy Transfer reliable, supports LNG license application

SK Gas

17/10/2023 23:28

By Curtis Williams
       HOUSTON, Oct 17 (Reuters) - Shell PLC  SHEL.L  has
submitted a letter to the U.S. Energy Department in support of
Energy Transfer's  ET.N  request for a new license to export
liquefied natural gas (LNG) to countries without free trade
agreements with the U.S., saying the pipeline operator is a
reliable gas supplier.
    Shell is among energy companies that have filed arbitration
cases against Venture Global LNG over its failure to supply fuel
under long-term contracts, even as it has shipped at least 200
cargoes to non-contract customers.
    "Reliability of supply has become a key issue recently among
non-free trade countries purchasing U.S. LNG and Shell very much
values Energy Transfer's credibility to deliver on what it
promises," said Jill Davies, president of Shell North America
LNG company, in the letter seen by Reuters.
    In August, Energy Transfer requested a new and expedited
export license for its proposed Lake Charles, Louisiana, LNG
plant, according to a DOE filing.
    The DOE in May had refused a three-year extension to Energy
Transfer's earlier license, saying the request did not meet
criteria for a second extension. Several other companies
including Commonwealth LNG have been waiting years for their
non-FTA license to be approved.
    South Korea's SK Gas LLC  018670.KS  and U.S. independent
gas producer EQT Corporation  EQT.N  also sent letters to the
DOE in support of Energy Transfer's application. 
    Energy Transfer has been pursuing the multi-billion-dollar
Lake Charles LNG project since 2012. In an August filing, it
said it could not finish the plant before the existing license's
2025 deadline, so it wants to receive a new license by Feb. 19,
2024 that would give it seven more years to complete the
project.
    The Dallas-based pipeline operator said it was unable to
meet the construction deadline, in part due to unplanned delays
and a decision to add a carbon capture and sequestration
component to the plant.
    The firm, controlled by billionaire Kelcy Warren, is one of
the largest U.S. natural gas pipeline operators. It has
long-term agreements to supply 7.9 million metric tons per annum
(MTPA) of the proposed plant's 16.45 MTPA capacity.
    
     
    

 (Reporting by Curtis Williams in Houston; Editing by Stephen
Coates)
 ((Curtis.Williams@thomsonreuters.com; +1 346 324 7560;))