Magnolia LNG is an eight million tonnes per annum (mtpa) LNG export terminal project in Louisiana, US
Glenfarne recently acquired Magnolia LNG its newly formed subsidiary Magnolia LNG. (Credit: LEEROY Agency from Pixabay)
Kinder Morgan and US-based Glenfarne Group have requested the US Federal Energy Regulatory Commission to extend the timeline to complete the $4.6bn Magnolia LNG export and associated gas pipeline expansions.
Recently, Glenfarne Group acquired Magnolia LNG through Glenfarne’s newly formed subsidiary Magnolia LNG.
Magnolia LNG is an eight million tonnes per annum (mtpa) LNG export terminal project in Louisiana, US.
The project has permission to receive natural gas from the existing Kinder Morgan Louisiana Pipeline (KMLP) and will pretreat, liquefy and store the LNG onsite for export and domestic purpose.
The project has already secured Federal Energy Regulatory Commission (FERC) approval in 2016.
The project was initially planned to be completed in five years by April 2021
As per the approval, the companies are required to complete the project within five years by April 2021, according to offshore-energy.biz.
However, Magnolia LNG and Kinder Morgan Louisiana Pipeline are now seeking additional five years to commission their respective facilities.
Glenfarne was reported by Reuters as saying in a statement: “Unforeseeable developments in the global LNG market have affected Magnolia LNG’s ability to enter into long-term LNG offtake contracts … critical to securing project financing and achieving (final investment decision).”
The unforeseeable developments include disruptions caused by the trade war between US and China and the plunging global energy demand due to lockdowns imposed to contain the Covid-19, according to the news agency.
Initial approval for the export of 4mtpa of LNG from the project to free trade agreement (FTA) countries was granted by the Department of Energy (DOE) in February 2013 and approval for an additional 4mtpa of LNG exports to FTA countries was approved by the DOE in March 2014.