The developer of the proposed Texas LNG project has asked FERC for an additional five years to build and place the 4 million metric ton/year (mmty) export terminal into service.
Texas LNG Brownsville LLC, a unit of Glenfarne Energy Transition LLC, reported to Federal Energy Regulatory Commission staff in a recent filing that the “protracted legal battle” over its authorization order has made it impossible to meet its in-service deadline of Nov. 22, 2024.
“These legal challenges and the various uncertainties the challenges caused delayed the project from multiple perspectives including commercial and marketing, regulatory and construction and constitute extenuating circumstances outside of Texas LNG’s control,” Texas LNG’s Oscar Lopez, regulatory and permitting manager, said in the request. “Therefore, Texas LNG requests an extension of time until Nov. 22, 2029, to complete construction of the project and place the facilities into service, consistent with commission regulations and precedent.”
Glenfarne previously guided that first liquefied natural gas shipments from the South Texas project could come sometime in 2028. Earlier in the year, Executive Vice President Adam Prestidge told NGI Glenfarne is aiming to reach a final investment decision by the end of the year after finalizing deals for the last remaining volumes.
The firm currently has tentative tolling agreements with EQT Corp. and Gunvor Group Ltd. for 2.5 mmty of export capacity.
Texas LNG is unaffected by the Department of Energy (DOE) pause on new worldwide export authorizations. However, its current permit to export cargoes to non-free trade agreement countries requires the facility to begin operations by February 2027.
FERC first authorized Texas LNG in 2019. In 2021, the U.S. Court of Appeals for the District of Columbia Circuit ordered the Commission to review its authorizations for Glenfarne’s project and NextDecade Corp.’s Rio Grande LNG facility. More than 18 months later, FERC reaffirmed its decision last year in a 3-1 vote.
The DC Circuit Court is currently considering an appeal for another remand of FERC’s authorization. Oral arguments began earlier in the month.
Like other LNG facilities on the Texas coast, Texas LNG would pull feed gas supply from the Agua Dulce natural gas hub near Corpus Christi. The terminal would be connected to Enbridge Inc.’s 2.6 Bcf/d capacity Valley Crossing pipeline system through a 10-mile-plus lateral.
Glenfarne and Enbridge have agreed to begin construction on that lateral once construction begins on Texas LNG.
Glenfarne also is developing the 8.8 mmty Magnolia LNG project in Lake Charles, LA. The firm late last year filed a new application for non-free trade agreement exports for Magnolia LNG, which is currently pending as the DOE reviews its policies on approving LNG projects.
