Texas LNG requests FERC extension to complete construction

Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition LLC, submitted to the US Federal Energy Regulatory Commission a request that the Director of the Office of Energy Projects grant an extension to complete its 4-million tonnes/year (tpy) LNG plant under development in the Port of Brownsville, Tex. 

The company is requesting approval to complete construction and place into service the Texas LNG project by Nov. 22, 2029, 5 years from the current timeline of Nov. 22, 2024.

In its filing May 24, the company said the project has been delayed due to extenuating circumstances outside of its control, specifically litigation challenging the Commission’s underlying orders authorizing the project and other permits for the project (OGJ Online, Apr. 25, 2023).

Since the 2019 project authorization, Texas LNG has been in a protracted legal battle over the order. Texas LNG’s FERC authorization was appealed to the DC Circuit and then remanded back to FERC, a process which took 1.5 years, the company said. FERC’s remand process took 20 months and has since been challenged again by the Sierra Club. Now, the appeal of the Remand Order is pending before the DC Circuit.

Texas LNG noted its diligence to secure and defend the necessary federal authorizations. On Jan. 25, 2024, the company obtained US Army Corps of Engineers Section 10 and Section 404 permits for the project, as well as approval from the Railroad Commission of Texas under the Coastal Zone Management Act of 1972, completing the project’s permitting efforts required for a final investment decision. The company also holds necessary authorizations from the Department of Energy to export LNG from the project.

Texas LNG executed heads of agreements with EQT Corp. anticipating a definitive 15-year LNG tolling agreement and with the Gunvor Group for a 20-year LNG tolling agreement for part of the project’s capacity (OGJ Online, Apr. 23, 2024; Mar. 18, 2024).