From Yahoo Finance: 2025-04-12 04:02:00

Energy Transfer is converting its Louisiana facility to an LNG export terminal, facing delays due to obstacles. Shell initially partnered with Energy Transfer but left in 2020. However, Shell returned in 2022 as a customer, signing a 20-year agreement for 2.1 million tons of LNG annually.

Energy Transfer recently partnered with MidOcean Energy to jointly develop the facility, with MidOcean funding 30% of the project cost in exchange for 30% of LNG production. This partnership brings Energy Transfer closer to making a Final Investment Decision (FID) on the project by the end of the year.

MidOcean will also finance 30% of the construction cost and commit to long-term gas transportation on Energy Transfer’s pipelines. This partnership will significantly reduce the capital outlay required by Energy Transfer and drive future cash flows from increased gas volumes flowing through its pipelines to the terminal.

The agreement with MidOcean Energy is a crucial step forward for Energy Transfer’s Lake Charles LNG project, providing the necessary funding and expertise to move the project closer to completion. With MidOcean on board, Energy Transfer is on track to make an FID by the end of the year, unlocking significant future cash flows and enhancing its high-yielding distribution.



Read more at Yahoo Finance: Energy Transfer Takes a Major Step Toward Adding a Lot More Fuel to Grow Its High-Yielding Dividend