BG Reports Completion of Lake Charles Project

BG Group plc

BG LNG Services, LLC (BG), a wholly owned subsidiary of BG Group plc, on Friday said that Trunkline LNG Co., a subsidiary of Southern Union Co., has completed Phase II of the Lake Charles liquefied natural gas (LNG) terminal expansion project.

The expansion project provides for increased baseload send-out capacity from 1.2 billion cubic feet per day (bcf/d) to 1.8 bcf/d, with peaking capacity of 2.1 bcf/d. This is in addition to the terminal's storage capacity of 9.0 bcf.

The Phase II expansion also includes additional pumps, vaporizers, and ship unloading facilities at the terminal's second dock.

In February 2004, BG announced its agreement with Trunkline for the second expansion of the Lake Charles, La., terminal, in which BG has 100 percent of all firm capacity rights through 2028. The first expansion project (Phase I), completed in the third quarter of 2005, initially increased the terminal's baseload send-out capacity from 630 million standard cubic feet per day (mmscf/d) to1.2 bcf/d and added an additional storage tank that increased the terminal's storage capacity from 6.3 bcf to 9.0 bcf.

Martin Houston, BG Group executive vice president and managing director, North America, Caribbean and Global LNG, said: “Meeting the increasing demands of the U.S. energy market requires a major expansion of LNG import capacity,” said Martin Houston, BG Group executive vice president and managing director, North America, Caribbean, and Global LNG. “The completion of this project at the country's largest operating LNG import terminal is an important milestone in the development of BG's LNG strategy. It helps secure our position as the leading low-cost supplier of LNG to the United States and increases our capacity to meet the needs of our growing customer base.”