Energy Transfer is tapping the brakes on Lake Charles LNG, saying it won’t give the Louisiana export project a final financial go-ahead until 80% of the development is sold to outside equity partners, Reuters writes.
The company has long-term buyers for most of the 16.5 MTPA project, but rising construction costs and risk exposure have pushed leadership to demand stronger capital sharing before committing. MidOcean Energy is positioned to take a 30% stake tied to roughly 5 million tons a year—but executives indicate they still need additional partners to step up before the end of the year to reach their internal risk-return criteria.
Energy Transfer is also evaluating whether converting a natural gas liquids pipeline to move natural gas could deliver stronger returns, citing surging U.S. power demand driven by data centers. The company says some scenarios show natural gas throughput could earn nearly twice the revenue of NGL service.
