News Post
Glenfarne has asked the FERC for 5 more years to build the Magnolia LNG export plant in Louisiana.
The Glenfarne Group of New York has requested a five-year extension from the U.S. Federal Energy Regulatory Commission (FERC) as the COVID-19 pandemic continues to impact offtake contract-dependent projects such as the 8.8 MMtpy Magnolia LNG project under development in Lake Charles, Louisiana.
The FERC originally approved this project in April 2016 for a completion in April 2021, but the pandemic driven drop in demand has made that timeline impossible. Glenfarne recently stated that “unforeseeable developments in the global LNG market have affected Magnolia LNG’s ability to enter into long-term LNG offtake contracts” and that this was “critical to securing project financing and achieving (final investment decision).” These “unforeseeable developments” include the pandemic demand drop and government lockdowns intended to curtail the coronavirus. These factors exacerbated an already depressed market that was hesitant to sign long term deals, mainly due to a record count of export plants online last year.
With this FERC request made, Glenfarne expects to determine during 2021 whether or to build the Magnolia LNG project. If so, this would place the project in service during the 2025-2026 timeframe.
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