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: China eyes continued expansion of smaller-scale LNG
-Adrienne Blume
Smaller-scale liquefaction in China, the world’s second-largest LNG importer, has experienced growth in recent years as China’s government integrates more gas into the country’s energy matrix.
Executive Q&A Viewpoint: SeaOne expands South American energy options with Compressed Gas Liquid technology
-Bruce Hall
SeaOne is a midstream infrastructure and logistics company that leverages its patented Compressed Gas Liquid (CGL™) technology to lower energy costs in various markets, generating new opportunities for economic growth and environmental stewardship.

The quest for plant availability: Achieving improved compressor reliability and efficiency in downstream operations

Register Now

Plants in the downstream industry require a great degree of operational availability, equipment reliability and efficiency: These factors are crucial for end users, as thousands of complex and intricate processes are operating in parallel – many of them are driven and safeguarded by compression technologies.

Uniformly, reliability is a universal maxim, and this holds particularly true for handling and compressing challenging gases processed in such plants. In fact, there is a direct, vital link between the reliability of compressor equipment designed for and used in these processes and the availability of the plant.

With a focus on different chemical/petrochemical, syngas and LNG applications our speaker Ulrich Schmitz will introduce to the listeners how centrifugal compression technologies such as integrally geared can be designed and employed reliably to perform the key process challenges of the industry, while also contributing to an efficient operation.

September 24, 2020 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.
© 2020 Gulf Publishing Holdings LLC.