The QatarEnergy-led joint venture that plans to turn the Golden Pass LNG import terminal into a massive export facility has asked US authorities to extend authorisation of the project by three years.
The request for time to build the Texas export facility by 30 November 2029 comes after significant delays in the project, which is expected to need a raft of LNG carriers to haul its volumes, and the bankruptcy of its main contractor.
Golden Pass LNG, in which QatarEnergy owns a 70% stake, with ExxonMobil holding the rest, has written to Federal Energy Regulatory Commission (FERC) acting secretary Debbie-Anne Reese to request the extension.
Diane Neal, Golden Pass’ assistant general counsel, said in the request that “extenuating circumstances” have led to the plea for more time.
Engineering and construction firm Zachy began slowing activities in February, furloughed its employees in April and filed for Chapter 11 bankruptcy in May, firing all its skilled workers on the site. That was even after Golden Pass paid $1bn to keep construction moving.
Those setbacks have not stopped natural gas giant QatarEnergy from ordering dozens of LNG carriers this year. TradeWinds reported this month that it is considering another tranche of 20 newbuildings, adding to 122 already on order.
The project’s current approval from the commission lapses in 2026, after a previous extension, but the company has now told the FERC that it cannot complete it in that timeline.
“GPLNG [Golden Pass] has proceeded diligently to construct the authorised facilities for the export of LNG and is fully committed to completion of the construction of the project facilities and placing them in service,” Neal wrote.
She said the venture has proceeded in good faith to progress the construction, which started in 2019.
“As a result of its efforts, GPLNG has made substantial progress in constructing the authorised facilities. As of the filing of this Motion, construction of GPLNG’s export project facilities is approximately 80% complete,” she wrote.
Construction on the first liquefaction train, which converts pipeline gas into LNG, is about 84% complete, Train 2 is 46% done and Train 3 is 33% complete.
Golden Pass LNG has now hired CB&I, a major builder of liquefaction trains, to complete the project, which will have capacity to pump out 18m tonnes per annum.
The company said it expects to complete the project well before 2029, but the extra time may be needed because of uncertainties.
“The additional time will allow for the rehiring and remobilisation of over 4,000 skilled workers and provide for potential uncertainties such as severe weather or hurricane delays when it may not be safe to have crews on site,” Neal wrote.
“The public interest served by the project, and the diligence with which the applicant has undertaken to advance its project supports the request for additional time to place its export facilities in service.”
