Energy Transfer LP has pushed back its final investment decision for the Lake Charles liquefied natural gas (LNG) export project in Louisiana to early 2026. This is a delay from their original plan to make the decision by the end of this year. Sources familiar with the matter said the company needs more time to finalize contracts and is facing rising costs.
The project involves expanding an existing LNG import terminal in Lake Charles into one that exports LNG. The facility is expected to have a capacity of 16.5 million metric tons per year. Energy Transfer has been working on this expansion for several years.
This delay comes as LNG developers in the U.S. rush to secure funding and start work quickly. Analysts predict that the global LNG market could face oversupply by 2027. Meanwhile, other big players like Qatar and Russia are also increasing their LNG and natural gas projects, which could add more supply in the coming years.
Energy Transfer has been close to sealing a deal to sell LNG from Lake Charles to MidOcean Energy, part of EIG Global Energy Partners. Several other companies, including Chevron, China’s ENN Energy Holdings, and South Korea’s SK Gas Trading, have already signed long-term contracts to buy LNG from the project.
When asked for comment, Energy Transfer did not respond to phone calls or emails. The company’s delay in decision-making reflects the wider challenges facing LNG exporters as they prepare for a shifting market landscape in the years ahead.