August 30, 2024 [Reuters]- The developer of a Texas liquefied natural gas export project on Wednesday asked U.S. regulators for a three-year extension to complete construction of the $10 billion Golden Pass LNG project, citing scheduling uncertainties.
Golden Pass LNG, a joint venture of QatarEnergy (QATPE.UL) and Exxon Mobil building an 18 million metric ton per annual LNG export project on the Texas coast, wrote that a change in primary contractors requires an extension until November, 2029.
Exxon and QatarEnergy this month said the project startup would be delayed until late next year. The current approval expires in November 2026 and the request signals a later startup.
The company’s “goal is to produce first LNG around the end of 2025 with commercial operations following thereafter,” a Golden Pass LNG spokesperson said. “The extensions we have requested build in time for contingencies.”
QatarEnergy owns 70% of the joint venture and Exxon the remainder.
“The additional time will allow for the rehiring and remobilization of over 4,000 skilled workers and provide for potential uncertainties such as severe weather or hurricane delays when it may not be safe to have crews on site,” Golden Pass LNG wrote the Federal Energy Regulatory Commission.
In May, Zachry Industrial, which was the primary contractor for the project, filed for bankruptcy after a dispute over $2.4 billion in cost overruns. Golden Pass LNG subsequently named CB&I, a unit of McDermott International as lead contractor.
Golden Pass LNG is seeking the additional three-year period under a FERC provision that allows an extension if a company can show it made good faith efforts to complete a project on time, it said in a letter to FERC.
Construction of the first gas-processing unit is approximately 83% complete, and the second and third processing units are 46% and 31% complete, respectively, the FERC filing said.
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