Magnolia LNG requests 5-year extension

Magnolia LNG LLC and Kinder Morgan Louisiana Pipeline LLC (KMLP) have requested a 5-year extension from the US Federal Energy Regulatory Commission (FERC) for completion of the 8.8-million tonne/year liquefaction plant and its supply infrastructure. Initial FERC approval of the project in 2016 mandated Apr. 15, 2021, completion. FERC authorized Magnolia LNG to begin site preparation in May 2017.

KMLP is to supply as much as 1.4 bcfd of natural gas to the plant via its Lake Charles Expansion project, construction of which is dependent on Magnolia LNG achieving a final investment decision (FID).  

The companies cited unforeseeable developments in the global LNG market as prompting the request, noting attendant difficulties in entering into long-term offtake contracts and their effect on both securing project financing and reaching FID.

Australia-based LNG Ltd. earlier this year sold Magnolia LNG to a subsidiary of Glenfarne Group LLC (OGJ Online, June 10, 2020).