In 2020, Magnolia LNG secured a five-year extension from FERC to complete the facility located near Lake Charles in Calcasieu Parish by April 15, 2026.
According to Magnolia’s request with FERC dated January 15, the LNG terminal developer now seeks an additional five-year extension until April 15, 2031, to complete construction and place the project in service.
Magnolia told FERC that “good cause” exists to grant its requested extension of time, as Magnolia faced “substantial, unprecedented delays at DOE that could not have been foreseen and were completely outside Magnolia’s control.”
“These delays prevented Magnolia from timely developing its project, despite Magnolia’s continued good faith efforts to do so,” it said.
DOE delays
Mangolia noted that its 2023 non-FTA application remains pending with the US DOE.
In March 2023, Magnolia filed a request to extend its previous non-FTA authorization with DOE to extend the deadline by 29 months, until April 15, 2025.
One month after Magnolia submitted its EOT request, DOE introduced a new policy regarding its handling of requests to extend the commencement deadline for non-FTA export authorizations
Mangolia said that the new policy statement imposed “substantially more stringent requirements to extend the commencement deadline under a non-FTA export authorization (including that the project must have commenced physical construction).”
The LNG terminal developer noted that it would then have to spend the next seven months attempting to work with DOE to grant the EOT request (under both DOE’s prior policy and then its 2023 policy statement) while simultaneously defending its EOT request from coordinated opposition from environmental organizations.
Ultimately, Magnolia was required to allow its prior non-FTA authorization to expire, and on November 29, 2023, Magnolia submitted a new non-FTA application to DOE, which remains pending.
In January 2024, Magnolia’s 2023 non-FTA application was then “subsumed under DOE’s
unprecedented formal pause in reviewing export applications while it updated its economic and environmental analyses.”
Magnolia said this would further delay all consideration of its 2023 non-FTA application until the pause was lifted one year later, and DOE resumed reviewing and approving non-FTA applications in late August 2025.
“Fully committed to realizing the project”
Magnolia said the regulatory delays at DOE naturally impacted the company’s ability to develop the project, hampering Magnolia’s efforts to secure offtake and advance commercial development of the project.
At the time of DOE’s pause, Magnolia had already shortlisted two major engineering and procurement contractor (EPC) companies from a larger initial group of potential contractors, the firm said.
However, the negotiations as part of this EPC company selection process had to be ceased due to lack of clarity on the status of Magnolia’s non-FTA authorization.
“Notwithstanding these delays, Magnolia remains fully committed to realizing the project, with Magnolia incurring substantial expenditures to develop the project and maintain necessary permits,” it said.
Magnolia’s work has included expenditures for site acquisition, property taxes, facility engineering, technical consulting services, safety and marine consulting services, legal services, and community relations activities.
Moreover, Magnolia noted that it is also a core component of the LNG portfolio of its corporate parent, Glenfarne.
Glenfarne is actively engaged in developing the Texas LNG and Alaska LNG projects.
“Simply put, there is no question that Magnolia is and has remained fully committed to developing the project despite these delays, and an extension of time is necessary to ensure that Magnolia can reach FID and commence and complete construction under a valid authorization,” the company said.
