Energy Transfer LNG Export, a subsidiary of U.S.-based Energy Transfer, has signed a heads of agreement (HOA) with MidOcean Energy, a liquified natural gas (LNG) company managed by EIG Global Energy Partners. The non-binding agreement outlines plans for the joint development of the Lake Charles LNG project in Louisiana, with MidOcean committing to fund 30% of the construction costs.

Upon a positive FID, the LNG export facility will be constructed on an existing brownfield regasification facility site.

Under the terms, MidOcean Energy will receive 30% of the LNG output, equivalent to approximately 5 million tonnes per annum (mtpa). The project, located along the Calcasieu Ship Channel in Lake Charles, aims to convert Energy Transfer’s existing LNG import and regasification terminal into an export facility. This transformation leverages existing infrastructure, including four LNG storage tanks, two deep-water berths, and connections to the Trunkline pipeline system, which accesses natural gas from basins like Haynesville, Permian, and Marcellus Shale.

Tom Mason, President of Energy Transfer LNG, expressed optimism about the partnership, stating: “We are pleased to have MidOcean partner with us on our Lake Charles LNG project and we believe its participation will provide a significant catalyst towards reaching positive FID [final investment decision].” He added: “MidOcean’s management's LNG experience will only be strengthened through this transaction.”

MidOcean Energy will have the option to arrange gas supply for its share of the LNG production and secure long-term gas transportation through Energy Transfer’s pipelines, subject to a positive final investment decision (FID) and other conditions. The facility is fully permitted for three liquefaction trains, each capable of producing 5.5 mtpa of LNG, positioning it as a competitive project along the Gulf Coast.

MidOcean CEO De la Rey Venter highlighted the strategic value of the collaboration, saying: “This agreement has the potential to transform MidOcean’s portfolio, providing a material volume of advantaged Atlantic Basin supply.” He further noted: “Geographical diversity is a key enabler for value delivery from an LNG portfolio. We look forward to a deep and fruitful multi-decade partnership with Energy Transfer.”

In a related development, Energy Transfer LNG Export signed a 20-year sales and purchase agreement with Chevron in December 2024 for 2 mtpa of LNG from the Lake Charles project, to be delivered on a free-on-board basis. The partnership with MidOcean and existing agreements underscore the project’s role in meeting global LNG demand while utilizing established infrastructure for cost efficiency and operational reliability.