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US regulator grants extra time for 2 Texas LNG tasks
The US Federal Power Regulatory Fee (FERC) granted requests October 13 to proponents of two Texas LNG tasks in search of extra time to complete the services.
Earlier this 12 months, each Freeport LNG and Port Arthur LNG filed extension requests with FERC. Freeport was asking for a 26-month extension, to August 1, 2028, to finish its 5.1mn metric tons/12 months Practice 4 challenge at its present three-train terminal, whereas Port Arthur LNG was in search of a 50-month extension, to June 18, 2028, to finish its two prepare, 13.5mn mt/12 months liquefaction terminal and two companion pipeline tasks.
FERC initially accepted Freeport LNG’s Practice 4 challenge in Could 2019 and ordered its completion by Could 2023. In 2020, citing Covid-19 impacts, Freeport requested and was granted a three-year extension, to Could 2026.
The Port Arthur LNG challenge and the 2 companion pipeline tasks, Louisiana Connector and Texas Connector, have been additionally initially accepted by FERC in Could 2019, and have been ordered to be in service by April 2024.
In each instances, delays stemming from the Covid-19 pandemic and its impression on international LNG markets have been cited as causes for delays, whereas Freeport additionally famous that it was pressured to exchange its unique engineering, procurement and building contractor.
“Freeport LNG states that demand for LNG has rebounded, and it has been actively negotiating with potential off-take prospects,” FERC mentioned in its determination report on Freeport’s request. “Freeport LNG anticipates a minimal 48-56 month building interval, which makes it unattainable for Freeport LNG to fulfill its present deadline of Could 17, 2026.”
Port Arthur LNG, in the meantime, mentioned it’s accelerating the commercialisation of the tasks and is making “good religion efforts” to develop them.
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