Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Glenfarne seeks five more years to build Louisiana Magnolia LNG export plant

Units of Glenfarne Group LLC and Kinder Morgan Inc have asked federal regulators for five more years to complete the Magnolia LNG export plant and associated gas pipeline expansions, according to filings.

The U.S. Federal Energy Regulatory Commission (FERC) approved construction of Magnolia LNG and related pipeline expansions in April 2016.

That approval required the companies to complete the project within five years, by April 2021.

Glenfarne, which acquired the Magnolia project from LNG Ltd of Australia in May 2020, said "unforeseeable developments in the global LNG market have affected Magnolia LNG’s ability to enter into long-term LNG offtake contracts ... critical to securing project financing and achieving (final investment decision)," referring to purchase agreements for gas.

Those "unforeseeable developments" included global energy demand destruction from government lockdowns to stop the spread of coronavirus and disruptions caused by the U.S.-China trade war.

Glenfarne has said it expects to decide late next year whether to build the Magnolia plant and the LNG facility it is developing in Texas. If the company decides to build the projects, they could enter service around 2025.

Several developers have put off decisions to build LNG projects in North America over the past year due to uncertainty about demand as the pandemic and other factors have cut energy consumption.

Even before the pandemic, gas prices were already trading at their lowest in years, making customers hesitant to sign long-term deals needed to finance multibillion-dollar LNG projects because the world was already awash in gas after a record number of export plants entered service in 2019.

Magnolia is designed to produce 8.8 MM tonnes per year (MTPY) of LNG or 1.2 billion cubic feet per day of natural gas. One billion cubic feet is enough gas to supply about 5 million U.S. homes for a day.

(Reporting by Scott DiSavino; Editing by Dan Grebler)

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
What are “green technologies,” and why do we need them in gas processing and LNG?
Executive Viewpoint: GTI’s Hydrogen Technology Center makes big strides in H2 projects, advocacy
-Kristine Wiley
To address the many challenges and opportunities in the world’s energy future, the U.S.-headquartered, global-focused GTI recently launched a Hydrogen Technology Center with world-class research and development capabilities.
Regional Focus: India leaps forward on natural gas infrastructure
-Gordon Feller
The operator of Europe’s largest natural gas transmission network is working to invest in the Indian gas pipeline business.

Throughput optimization for pipelines and gas plants

Register Now

Many processes within oil and gas pipelines and processing plants depend on maintaining specific temperatures and pressures at which the process fluids are liquids or gases. In addition, anytime water is a component in the process fluid hydrates can form and plug piping and vessels. Learn how Sensia’s Throughput optimization solution allows operators, and control systems to “see inside” the process in real time to understand where the facility is operating with respect to critical physical constants, including the phase envelope and hydrate temperature. This insight allows for more stable operation, reduced energy expenditure and associated emissions, and greater facility throughput. Case studies will include controlling methanol injection, managing heaters, virtual sensors for sulfur recovery units and more.

April 1, 2021 10:00 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2021 Gulf Publishing Holdings LLC.