New Magnolia LNG project owners Glenfarne ask FERC for five more years to complete plant

Tuesday, 15 September 2020
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Glenfarne Group, the owner of the Magnolia LNG export project in Louisiana, has made a request to the Federal Energy Regulatory Commission for five more years to complete the plant and associated facilities.

The regulators had previously approved construction of Magnolia LNG and related pipeline expansions in April 2016 under its previous owner, the Australian-listed company LNG Ltd that ceased trading amid financial difficulties.

That approval had required LNG Ltd to complete the project within five years, by April 2021.

The Magnolia plant is proposed for a 115-acre site near the Calcasieu Ship Channel. It is designed to produce 8.8 million tonnes per annum of LNG from four Trains.

“Unforeseeable developments in the global LNG market have affected Magnolia LNG’s ability to enter into long-term LNG offtake contracts,” privately-held Glenfarne told the FERC in requesting the extension.

“Magnolia and pipeline provider Kinder Morgan request a five-year extension of their authorizations, up to and including April 15, 2026, to place the Magnolia LNG Project facilities and Lake Charles Expansion Project facilities, respectively, into service,” Glenfarne added in its Magnolia project filing.

A final investment decision had not yet been taken on Magnolia as it sought to finalize a purchase agreement with a Vietnamese power and import venture in the Mekong Delta. That accord has now lapsed.

Glenfarne also acquired LNG Ltd.’s patented optimized single mixed refrigerant (OSMR) liquefaction technology from the Australian administrators.

Its purchase of Magnolia boosts the amount of US LNG export capacity Glenfarne has under development to 12 MTPA as it also owns Texas LNG Brownsville.

The Texas project received authorization from the FERC in November 2019 for the facility to be sited along the Brownsville Ship Channel.

Texas LNG seeks to supply Permian feed-gas as LNG to global customers along with two other rival projects being developed alongside.

These are the Rio Grande LNG project with five liquefaction Trains and over 26 MTPA of output and the smaller scale Annova LNG venture.

Rio Grande is own by NextDecade Corp and one of the main shareholders in Annova is Exelon Corp, the utility headquartered in Chicago.

All three Brownsville projects have pushed back their investment decisions and original construction and engineering timetables.

Glenfarne’s Texas LNG leadership still includes the project's co-founders, Chief Executive Vivek Chandra and Chief Operating Officer Langtry Meyer.

The sale to Glenfarne by the Australian administrators of LNG Ltd assets did not include the proposed Bear Head LNG project in the Canadian province of Nova Scotia with 12 MTPA of capacity.

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