/Reuters Agency
Commonwealth LNG has requested a four-year extension from federal regulators to build and begin exporting liquefied natural gas (LNG) from a planned plant in Cameron Parish, Louisiana, according to a regulatory document.
In a letter to the Federal Energy Regulatory Commission (FERC), Commonwealth explained that the extension is necessary due to a pause in approvals implemented last year by the then U.S. President, Joe Biden.
Although President Donald Trump lifted the suspension this year, the company indicated that it cannot meet the current deadline of November 2027 and therefore requested that it be extended until December 2031.
“These delays were beyond Commonwealth’s control and inevitably affected the company’s ability to advance the project according to the schedule contemplated at the time of filing its application,” the company stated in the regulatory document.
To date, Commonwealth has sold 5 million metric tons per year of the projected capacity, but has not yet managed to commercialize the entire 9.5 million metric tons per year that would come into operation once the plant is completed.
LNG project developers typically try to sell most of the future volumes through long-term agreements before giving the financial green light, known as a final investment decision (FID) for the plant’s construction.
“We are in negotiations and have near-term visibility to sign the remaining volumes, and we remain on track to reach FID in 2025,” Commonwealth told Reuters.
The company has previously stated that its developer, Kimmeridge, would also reserve 2 million metric tons per year (mtpa) of the project for its own commercial operations.
Commonwealth has sales agreements with EQT, Glencore, Jera and Petronas. FERC stated that if the extension request is challenged, it will seek to issue a decision within 45 days.
