May 29, 2024 [LNG Prime]- Glenfarne has requested more time from the US FERC to build and place in service its 4 mtpa Texas LNG export project in Brownsville.
According to a filling dated May 24, Texas LNG seeks an additional five-year extension to complete construction and place the project in service until November 22, 2029.
Back in 2019, the regulator authorized Texas LNG to build the plant and place it in service by November 22, 2024.
Texas LNG told FERC that the project had been delayed due to “extenuating circumstances” outside of Texas LNG’s control, specifically litigation challenging the Commission’s underlying orders authorizing the project and other permits for the project.
Since FERC issued the authorization order in 2019, Texas LNG has been in a protracted legal battle over the order.
Texas LNG’s FERC authorization was appealed to the D.C. Circuit and then remanded back to FERC, a process which took a year-and-a-half, according to Texas LNG.
On top of that, FERC’s remand process took 20 months and has since been challenged again by the Sierra Club, it said.
Now, the appeal of the remand order is pending before the D.C. Circuit.
In the time since the authorization order, Texas LNG has “worked diligently to secure
and defend the necessary federal authorizations to begin construction,” it said.
On January 25, 2024, Texas LNG obtained U.S. Army Corps of Engineers Section 10 and Section 404 permits for the project, as well as approval from the Railroad Commission of Texas, completing the project’s permitting efforts required for a final investment decision, it said.
Texas LNG also has the necessary authorizations from the Department of Energy to
export LNG from the project.
“Significant” progress on project commercialization
Since its authorization, Texas LNG has been in “active” discussions and negotiations with
buyers of LNG.
Texas LNG executed heads of agreements with EQT Corporation anticipating a definitive
15-year LNG tolling agreement, and with Gunvor for a 20-year LNG tolling agreement for part of the project’s capacity.
Besides these deals, Texas LNG also previously selected Swiss engineering group ABB and US energy services firm Baker Hughes to supply equipment for its LNG project. It also awarded a tugboat contract to Gulf LNG Tugs of Texas.
These partnerships total nearly one billion dollars of investment into the project, according to the firm.
“Despite the protracted litigation, Texas LNG is making significant progress on its commercialization of its project and is optimistic that the project will help meet the rising global demand for LNG that is expected to increase significantly over the coming decades,” it said.
Texas LNG said it has the necessary internal and external technical resources committed to the development and construction of the project, and will continue to pursue and execute commercial agreements.
The firm said it has demonstrated that “good cause” exists to grant the requested extension of time.
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