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.
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.
Following 53 separate levee breaches in and around New Orleans, 80% of Orleans Parish flooded under 2 to 20 feet of water. Well over a quarter-million homes were destroyed with many more damaged, and tens of thousands of businesses were damaged or destroyed.
Over 1.7 million insurance company claims were reportedly filed with over $41 billion paid to policyholders. Over 163,000 NFIP flood insurance claims were filed and over $15 billion paid to policyholders, with the average payment being “just” $94,000. Total property damage was estimated to be $85 billion, resulting in an uninsured total of almost $29 billion.
These numbers were provided several years after Katrina by Jim Mahurin, CPCU, ARM, a risk management consultant who did years of expert witness and consulting work along the Gulf Coast following Katrina. Contrary to the numerous media reports of poor service by insurers, along with extensive litigation, according to Mahurin, only 2% of claims were disputed, tracking with the national average for non-disaster claims.
He also asserts that New Orleans area independent agents did an exemplary job over many years in informing prospects and policyholders of the importance of purchasing flood insurance, including newly available excess flood coverage. As a result, almost 60% of property owners in the Greater New Orleans area had NFIP coverage, but very few, including many high-net-worth individuals, had excess coverage. Independent agents offered excess coverage, but few property owners accepted it. These agents documented their offers, something that proved invaluable when E&O claims were filed.