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Glenfarne seeks five more years until 2029 to build Texas LNG export plant
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Glenfarne seeks five more years until 2029 to build Texas LNG export plant
May 28, 2024 11:58 AM

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

LLC has asked federal energy regulators for five more years

until November 2029 to put its proposed Texas LNG export plant

in Texas 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 (FERC)

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.

Officials at Glenfarne were not immediately available for

comment on when the company plans to make a final investment

decision (FID) to build the project, or how much it might cost.

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.

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 non-binding 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-MTPA Magnolia LNG

export plant in Louisiana.

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