US regulator grants more time for two Texas LNG projects
The US Federal Energy Regulatory Commission (FERC) granted requests October 13 to proponents of two Texas LNG projects seeking more time to finish the facilities.
Earlier this year, both Freeport LNG and Port Arthur LNG filed extension requests with FERC. Freeport was asking for a 26-month extension, to August 1, 2028, to complete its 5.1mn metric tons/year Train 4 project at its existing three-train terminal, while Port Arthur LNG was seeking a 50-month extension, to June 18, 2028, to complete its two train, 13.5mn mt/year liquefaction terminal and two companion pipeline projects.
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FERC initially approved Freeport LNG’s Train 4 project in May 2019 and ordered its completion by May 2023. In 2020, citing Covid-19 impacts, Freeport requested and was granted a three-year extension, to May 2026.
The Port Arthur LNG project and the two companion pipeline projects, Louisiana Connector and Texas Connector, were also initially approved by FERC in May 2019, and were ordered to be in service by April 2024.
In both cases, delays stemming from the Covid-19 pandemic and its impact on global LNG markets were cited as reasons for delays, while Freeport also noted that it was forced to replace its original engineering, procurement and construction contractor.
“Freeport LNG states that demand for LNG has rebounded, and it has been actively negotiating with potential off-take customers,” FERC said in its decision report on Freeport’s request. “Freeport LNG anticipates a minimum 48-56 month construction period, which makes it impossible for Freeport LNG to meet its current deadline of May 17, 2026.”
Port Arthur LNG, meanwhile, said it is accelerating the commercialisation of the projects and is making “good faith efforts” to develop them.