Glenfarne Group’s Magnolia LNG has secured a 5-year extension from the federal regulators to build its liquefaction and export plant in Louisiana.
US FERC’s previous approval for the LNG export project and related Kinder Morgan pipeline that will supply feed gas required the firms to build them by April 2021.
Under the new extension, Magnolia LNG and the pipeline would begin operations by April 15, 2026.
Glenfanre previously said that global market conditions such as the Covid-induced demand destruction have impacted Magnolia’s ability to secure long-term offtake contracts and achieve a final investment decision.
The firm plans to decide next year whether it would build the facility or not.
Magnolia has the “right size and scope”
To remind, New York-based industrial owner and operator Glenfarne has earlier this year acquired the 8.8 mtpa project with a four train mid-scale design from Australia-based LNG Limited.
“We believe Magnolia LNG has the right size and scope to best compete in the current and future LNG market and is well-positioned to meet global demand starting in the middle of this decade,” said Brendan Duval, Founder and Managing Partner of Glenfarne.
Furthermore, Glenfarne has two operating subsidiaries: Alder Midstream, which focuses on building, owning, and operating midstream and LNG assets, and EnfraGen, a developer, owner, and operator of specialized power generation assets.
The firm’s total planned LNG export capacity stands at 12.8 mtpa including 4 mtpa from Texas LNG Brownsville, a FERC-permitted LNG export development project majority-owned by Alder Midstream.
