The U.S. Federal Energy Regulatory Commission last week granted a five-year extension to complete the Magnolia LNG export plant in Louisiana.
FERC approved construction of Magnolia and related pipeline expansions by a unit of Kinder Morgan Inc. in April 2016. The new deadline is April 2026.
The extension covers the liquefaction/export facility being developed by the Glenfarne Group and related pipelines being developed by Kinder Morgan Louisiana Pipeline LLC. The previous FERC deadline to complete the project had been April 15, 2021.
More time is needed because unexpected global market conditions kept the developers from securing firm offtake contracts to advance the project, the companies said in a letter to FERC. Construction has not yet started on the facilities. A final investment decision is expected in 2021.
The 8 MTPA facility at Lake Charles, Louisiana, was initially developed by Australia-based Liquefied Natural Gas Limited, which is now undergoing a corporate restructuring. Last June, it sold the LNG project to the Glenfarne Group, a privately held New York energy firm, for $2 billion.