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Port extends option agreement for Lake Charles Methanol 2 and hears project update
Summary
The board approved an amendment to extend Lake Charles Methanol 2's option agreement. CEO/COO Linda Miller told the board the air permit was issued Oct. 23, a draft water permit has a Dec. 19 hearing, financing discussions are ongoing, and construction cost estimates remain under refinement.
The Lake Charles Harbor Terminal District on Nov. 25 approved Submission 2024-050, authorizing an amendment to extend the option agreement for Lake Charles Methanol 2. The board adopted the extension by voice vote after a detailed project update from Linda Miller, who identified herself as chief executive chief operating officer of Lake Charles Methanol 2.
Miller said the company received its air permit on Oct. 23 and that the permit becomes final if unappealed after a 30-day period. "The period to appeal to the EPA has already passed," she said, and the port's staff has been assisting with outstanding permits. She told commissioners the draft water permit was issued Nov. 12, a public hearing is scheduled for Dec. 19 and comments are due Dec. 23; the project expects final water permitting early next year if there are no impediments.
On financing and schedule, Miller said lenders are positioned but the team is prioritizing bank financing over a federal loan guarantee given uncertainty about federal program continuity. She described ongoing work to obtain a Kroll rating, to finalize construction contracts and to value-engineer civil costs; test piles and surcharge programs are under way to inform piling needs. Miller said the project has long-term offtake contracts, natural gas supply from BP and CO2 sequestration arrangements with Exxon, which together factor into the project's economics.
A commissioner moved to adopt the requested amendment to extend the option agreement and, after no objections, the chair declared the item passed. The transcript does not include a roll-call or recorded vote tally. Board discussion during the presentation focused on permitting milestones, financing timing and construction cost uncertainty. Miller told the board she hopes to close financing in mid to late next year, with conservative scheduling that could push a closing into September if July is missed.
