HOUSTON, Oct 7 (Reuters) - Commonwealth LNG has asked
federal regulators for a four-year extension to construct and
begin exporting liquefied natural gas from a proposed export
facility in Cameron Parish, Louisiana, a regulatory document
shows.
In a letter to the Federal Energy Regulatory Commission,
Commonwealth said the extension was needed due to an approval
pause implemented by former U.S. President Joe Biden last year.
While President Donald Trump lifted the freeze earlier this
year, the company said it cannot meet the present deadline of
November 2027 and wants it extended to December 2031.
"These delays were beyond the control of Commonwealth and
unavoidably affected Commonwealth's ability to advance the
Project on the schedule contemplated when its application was
filed," the company said in the filing.
Commonwealth has so far sold 5 million metric tons per annum
of planned capacity but is still short of selling out the
total 9.5 mtpa that would come online upon completion. LNG
developers usually try to sell most of the future flows in
long-term agreements before giving the financial greenlight for
a plant to be built.
Commonwealth did not immediately respond to a
question about whether the excess capacity that has not been
sold yet also played a role in the request for more time. The
company has sales agreements with EQT, Glencore ( GLCNF )
, JERA and PETRONAS.
The company has previously said it wants to make a final
investment decision on the construction of the plant before the
end of the year.
The FERC said if the extension request is contested, it will
aim to issue a decision within 45 days.