Commonwealth LNG wants to extend the time for building a planned export facility in Louisiana
A regulatory document indicates that Commonwealth LNG asked federal regulators to extend the construction period and start shipping of liquefied gas from an export facility proposed in Cameron Parish, Louisiana by four years.
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.
The company, which has been a part of the President Donald Trump administration since this year when he lifted the freeze, says it can't meet the current deadline of November 2027. They want 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 out 5 million metric tonnes per annum (mtpa) of the planned capacity, but it is still short on selling all 9.5 mtpa.
Before approving the final investment decision for a new LNG plant, LNG developers try to sell the majority of future flows through long-term contracts.
Commonwealth said on Tuesday that it was in the midst of negotiations, and had a near-term view to sign the remaining volumes. We remain on track to achieve FID by 2025.
In the past, the company said that its developer Kimmeridge would keep 2 mtpa of the project for themselves.
Commonwealth has signed sales agreements with EQT, Glencore. JERA. PETRONAS.
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)