May 23 (Reuters) - U.S. energy regulators approved Gulf
LNG's request for five more years until 2029 to build a proposed
liquefied natural gas (LNG) export plant at the site of an
existing LNG import plant in Mississippi, according to a federal
filing on Thursday.
Gulf LNG is one of more than three dozen LNG export plants
under development in the U.S., Mexico and Canada, some of which
have been under development for many years. The U.S. is the
biggest global LNG exporter.
The U.S. Federal Energy Regulatory Commission (FERC)
approved construction of the Gulf LNG export project in July
2019. That order gave the company until July 2024 to construct
the facility and place it into service.
In February, Gulf LNG requested five more years until July
2029 to complete the project. FERC approved that request on
Thursday.
Gulf LNG is half-owned by units of U.S. pipeline company
Kinder Morgan ( KMI ), with the other half owned by units of
several investors, including Blackstone, Warburg Pincus
, Kelso and Co and Chatham Asset Management, according to
the Gulf LNG website.
Gulf LNG said in its FERC filing that it needed more time to
build the plant in part because the "pandemic created challenges
for commencing construction and executing international
commercial agreements."
Gulf LNG also said in the filing that its involvement in
litigation with existing import customers has hampered its
ability to execute offtake contracts. The company said it
anticipates a resolution of the dispute this year.
Gulf LNG did not name the current LNG offtake buyers. The
last LNG imported to Gulf LNG was in 2011, according to the U.S.
Energy Information Administration.
Kinder Morgan ( KMI ) said in a statement it was pleased with FERC's
extension, but did not answer questions about the last time Gulf
LNG received imports or when the company planned to make a final
investment decision.
Gulf LNG proposed to build two liquefaction trains at the
site. Together the two trains could turn about 1.4 billion cubic
feet per day (bcfd) of natural gas into roughly 10.9 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.