As of version 0.19.1 of the python lz4 bindings, there is full support for buffered IO provided. So, you should be able to do something like:
import lz4.frame
chunk_size = 128 * 1024 * 1024
with lz4.frame.open('mybigfile.lz4', 'r') as file:
chunk = file.read(size=chunk_size)
# Do stuff with this chunk of data.
which will read in data from the file at around 128 MB at a time.
Aside: I am the maintainer of the python lz4 package - please do file issues on the project page if you have problems with the package, or if something is not clear in the documentation.