Lake Charles LNG Projects Needs Another 5 Years To Build
Global market conditions have impacted Magnolia LNG’s ability to reach FID. Kinder Morgan’s pipeline project also depends on an FID for the Magnolia LNG project.
Developers of the 8.8-mtpa Magnolia LNG export terminal in Lake Charles, Louisiana, requested another 5 years from the Federal Energy Regulatory Commission (FERC) to bring the project on line due to unexpected market conditions.
Both the Glenfarne Group and Kinder Morgan Louisiana Pipeline (KMLP) requested an extension to 15 April 2026 for completion of the project. FERC originally set a deadline of 15 April 2021 to complete the project.
“Despite Magnolia LNG’s diligent efforts to develop the Magnolia LNG Project, global market conditions have impacted the Magnolia LNG’s ability to secure long-term offtake contracts and achieve a final investment decision [FID]),” said Magnolia LNG in its request to FERC.
KMLP’s construction of the project depends on the FID for the Magnolia LNG Project.
KMLP plans to deliver 1.4 Bcf/D of natural gas to the LNG project.
The request comes 3 months after Glenfarne Group acquired Magnolia LNG from Australian-based LNG Ltd.