Joint documents have been filed with the U.S. Federal Energy Regulatory Commission (FERC) by Magnolia LNG and Kinder Morgan, requesting a five-year extension to the deadline for completion of the Magnolia LNG export terminal in Louisiana. They blame “unforeseeable developments in the global LNG market.”
Global oversupply of LNG, disruptions in the China-U.S. LNG trade and the ongoing COVID-19 pandemic have affected the terminal’s ability to secure offtake contracts, they said.
The terminal, which was bought by Glenfarne Group in June through its subsidiary, Magnolia LNG Holdings, will have a capacity of 8.8 million tpa and can pretreat, liquefy and store LNG for domestic use and export.
Kinder Morgan is developing the Kinder Morgan Louisiana Pipeline (KMLP), which will connect the terminal to various interstate pipelines for gas transmission.
Under the initial permit for the development issued by FERC, the Magnolia LNG project has a completion date of April 15, 2021, however, the developers have requested that this be extended to April 15, 2026.
The developers expect the short-term oversupply to ease and say that once this has happened, Magnolia LNG will be a competitive, low-cost LNG provider. Parent company Glenfarne said it is committed to success of the project.
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