French-US pair bag over $1 billion for revamp project to bring America’s LNG import terminal new lease on life as large export facilities

The KTJV joint venture between France’s engineering company Technip Energies and the U.S. science, technology, and engineering player KBR has been put in charge of repurposing a liquefied natural gas (LNG) import and regasification terminal, located on Louisiana’s Gulf Coast, into what has been envisioned to become one of the largest LNG facilities in the United States.

Technip Energies and KBR have described their new assignment as a “major” engineering, procurement, manufacturing, and construction (EPFC) project, which will convert the Lake Charles LNG import and regasification terminal, run by Lake Charles Exports (LCE), a subsidiary of Energy Transfer, into an LNG export terminal, subject to the final investment decision (FID).

While the exact amount has not been specified, the French player did clarify that the U.S. deal exceeds €1 billion and will be counted in the order intake once the full work order has been issued. The JV partners’ contract entails the construction of a new LNG export facility with a capacity of 16.45 million tons per annum (mtpa).

Arnaud Pieton, Chief Executive Officer of Technip Energies, commented: “We are very pleased to have been selected by Lake Charles LNG for this major contract which, once the final investment decision is made, will underline our continued leadership in the field of modular LNG and our strategic commitment to this market.

“This conversion will play a critical role in expanding the global LNG supply. By providing the necessary infrastructure, we will support our customer’s ambition to transport and distribute LNG worldwide. We look forward to bringing our leading LNG knowledge to this Lake Charles LNG initiative.”

Covering three modular LNG trains with a capacity of 5.5 mtpa, the modification of the LNG storage facilities, as well as the supply, transportation, fabrication, installation, commissioning, and start-up of the terminal, KTJV’s deal enables partners to provide high-end engineering, procurement, construction management, construction, commissioning, start-up, and other related services, subject to Lake Charles LNG’s decision to issue a notice to proceed for the project.

Stuart Bradie, KBR’s President and CEO, remarked: “Lake Charles LNG will help bolster global energy security and it will be designed to be one of the most efficient and cleanest operating facilities in the United States. Lake Charles LNG is yet another example of how we are committed to helping our clients accomplish their business objectives in line with our strategy and lower-risk business model.”

The idea behind the project is to transform Energy Transfer’s existing import facility into an LNG export terminal to meet the world’s growing LNG and energy security demands with the delivery of three liquefaction trains and modifications to existing storage and dock facilities designed to enable the export of 16.45 metric tons per annum of LNG.

Tom Mason, President of Lake Charles LNG, highlighted: “Lake Charles LNG is pleased to secure the engagement of two world-class companies for the engineering, procurement and construction of our liquefaction project. The contract structure allows KTJV and Lake Charles LNG to align to deliver a high-quality, cost-optimized project.

“Our willingness to start the contract is contingent on our final decision to invest in the project, which will be based on securing sufficient commercial commitments and capital from third parties to meet our internal objectives. Our alignment with KTJV is another positive step in the steady progress of this project .”

Lake Charles Exports recently requested immediate action from the U.S. regarding its application to export LNG from the Lake Charles LNG project to non-free trade agreement (non-FTA) countries, following the preliminary injunction issued by a Louisiana judge to revoke the pause on pending permits for such projects.

The pending application is related to the authorization for exporting up to 851 bcf/year of LNG from the existing Lake Charles terminal. The firm argues that this should be fast-tracked as the Department of Energy (DOE) already authorized the same amount of LNG to be exported from the Lake Charles terminal after finding it was not inconsistent with the public interest.

KBR and Technip Energies have added multiple new assignments to their agenda this year. Recently, the U.S. firm won engineering contracts with Seatrium to develop topside facilities for a pair of floating production storage and offloading (FPSO) units for two pre-salt ultra-deepwater fields located in the prolific Santos Basin off the coast of Brazil.

On the other hand, Technip Energies, which finished work on the second phase of an offshore oil field in the Arabian Gulf, secured a contract for an LNG project in Sohar, Oman, which is being developed by Marsa LNG, an integrated company consisting of TotalEnergies and Oman’s OQ national oil company (NOC).