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Glenfarne seeks five more years to build Texas LNG export plant
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Glenfarne seeks five more years to build Texas LNG export plant
May 28, 2024 2:40 PM

May 28 (Reuters) - U.S. energy company Glenfarne Group

LLC has asked federal energy regulators to give it until

November 2029 to put its proposed Texas LNG export plant into

service, according to a filing made available on Tuesday.

Texas LNG is one of more than three dozen LNG export plants

being developed in the U.S., Mexico and Canada, some of which

have been under development for many years.

The U.S. Federal Energy Regulatory Commission approved

construction of Texas LNG in November 2019. That order gave the

company five years, until November 2024, to construct the

facility and place it into service.

"We expect this to be approved without impacting the project

or its timeline," Brendan Duval, CEO and founder of Glenfarne

Energy Transition, told Reuters.

On average, it costs about $800-$1,000 per tonne to build an

LNG export plant, so the Texas LNG project would likely cost

between $3.2 billion and $4 billion, according to an estimate by

Reuters.

Glenfarne said in its FERC filing that the project was

delayed due to "extenuating circumstances outside of Texas LNG's

control," including litigation by the Sierra Club environmental

group challenging FERC's orders authorizing the project and

other fights over state permits.

Glenfarne wants to build two liquefaction trains at Texas

LNG that together would be able turn about 0.5 billion cubic

feet per day (bcfd) of natural gas into about 4 million tonnes

per annum (MTPA) of LNG.

One billion cubic feet of natural gas is enough to supply

about 5 million U.S. homes for a day.

The U.S. is the biggest global LNG exporter and currently

has the capacity to produce around 104.6 MTPA of LNG.

In addition to producing LNG for its own power plants,

Glenfarne has said it also wants to sell LNG to other companies

to help finance its projects.

Glenfarne already has nonbinding LNG supply agreements with

units of Swiss commodities trader Gunvor and U.S. energy company

EQT, the biggest U.S. gas producer, according to its

FERC filing.

Glenfarne is also developing the 8.8 million tonnes per

annum Magnolia LNG export plant, to be located in Lake Charles,

Louisiana.

"Once DOE completes its analysis, we are confident they will

see the benefits Magnolia LNG brings to advance the energy

transition" Duval added.

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