Commonwealth LNG wants to extend the time for building a planned export facility in Louisiana

A regulatory document shows that Commonwealth LNG asked federal regulators to extend the time period by four years for construction and export of liquefied gas from an export facility proposed in Cameron Parish, Louisiana.

Commonwealth wrote to the Federal Energy Regulatory Commission to explain that the extension was necessary due to a pause in approvals implemented by the former U.S. president Joe Biden, last year. Although President Donald Trump lifted this freeze earlier in the year, Commonwealth said that it could not meet the current deadline of November 20,27 and wanted it extended until December 2031.

The company stated in its filing that "These delays were out of Commonwealth's control and unavoidably impacted Commonwealth's capability to advance the Project within the time frame contemplated at the time the application was filed."

Commonwealth has sold 5 million tons of capacity per year, but it is still short on the 9.5 mtpa total that will be available upon completion. Before approving a project, LNG developers try to secure long-term contracts that cover the majority of future flows.

Commonwealth did not respond immediately to a query about whether excess capacity which hasn't been sold played a part in the request for additional time. The company has agreements with EQT, Glencore. JERA and PETRONAS.

The company had previously stated that it wanted to make a decision about the final investment on the construction of this plant by the end of the current year.

The FERC stated that if the request for an extension is contested, they will try to make a decision in 45 days. Curtis Williams reported from Houston, and Nathan Crooks edited the story.

(source: Reuters)