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Shell, Korean gas co. ponder LNG partnership with Energy Transfer Partners

South Korean gas company and Royal Dutch Shell are considering throwing their weight behind yet another liquefied natural gas plant.

Energy Transfer Partners announced on Thursday that Korea Gas Corporation and BG LNG Services, a Houston-based subsidiary of Royal Dutch Shell, are interested in working with the Dallas pipeline giant on its Lake Charles LNG Liquefaction Project.

The Lake Charles project in Louisiana is wholly owned by Energy Transfer and its entities. The company expects to build on its existing regasification import facility there.

The three parties signed a non-binding memorandum on Wednesday agreeing to study the project’s economics, engineering, procurement, construction, gas sourcing and marketing.

Energy Transfer’s 440-acre Lake Charles site is located close to many of the largest natural gas production areas in the U.S., the company said, and is connected to its 2,200-mile Trunkline natural gas system, which ties into more than a dozen interstate and intrastate pipelines.Although Lake Charles was ahead of the pack in filing for its export license, it only recently filed for its FERC permit. Location: Lake Charles, La. Companies: BG Group and Energy Transfer Equity and Energy Transfer Partners (including ETE and ETP subsidiaries Trunkline LNG Co. and Trunkline LNG Export) Expected first exports: 2019. Customer: BG Group (which has exclusive rights to the full export capacity) Export license: Conditional approval Aug. 7, 2013 to export 2 Bcf/day. FERC license: Initial application.

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