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In May 2024, Kinder Morgan and its partners secured an extension of time, until July 16, 2029, from the US FERC to construct and make available for service the Gulf LNG liquefaction project, which includes adding liquefaction and export facilities at the existing Gulf LNG import terminal.
Gulf LNG Liquefaction filed a request on March 31, 2026, asking DOE to amend its existing authorization to export domestically produced LNG to non-free trade agreement countries, specifically, to extend its current export commencement deadline.
GLCC’s current order requires the company to commence commercial LNG export operations no later than July 31, 2026.
Because GLLC has not commenced commercial LNG export operations to non-FTA countries, the company requests that its existing authorization be extended for another five years until July 31, 2031, it said.
“Good cause”
GLLC told DOE that “good cause” exists to grant its request to extend its export commencement deadline.
The company noted that it had been attempting to enter into commercial agreements for the export of LNG from the liquefaction project and to proceed with the construction and operation of the terminal facilities
As FERC found when extending the deadline for GLLC to construct the facility and place
it into service, GLLC has “made a good faith effort to meet the deadline in their authorization and … good cause exists for an extension.”
However, those efforts have been “frustrated” by events outside of GLLC’s control, it said.
Specifically, within months after the issuance of its DOE order, the Covid 19 pandemic commenced, “significantly delaying both efforts to construct the export facilities to reach commercial agreements.”
GLLC’s affiliates at the terminal have also been involved in litigation with import customers which only recently resolved and which during its pendency caused uncertainty regarding the project, hampering GLLC’s ability to execute commercial liquefaction take-off contracts with potential customers, it said.
“Presently, uncertainty regarding the export commencement deadline has similarly frustrated GLLC’s commercial efforts,” the company said.
Notwithstanding these challenges, GLLC has been actively developing the project, the company said.
GLLC has obtained almost all required federal, state, and local authorizations and permits related to the construction and operation of the project facilities, and has worked to maintain those permits.
The company said it has also been working with a development group, including with an EPC company, in preparation for the project’s phases and to ensure that process structures and project resources are strategically in place to execute on front-end engineering design and post-FID activities.
Two trains
The existing import terminal has a single jetty that is currently permitted to receive up to 170,000 cbm LNG vessels and designed to handle vessels with capacities of up to 250,000 cbm.
As part of the liquefaction project, the permitted limit will be increased to 208,000 cubic meters, according to Kinder Morgan.
The import facility has two LNG storage tanks, each with a capacity of 160,000 cbm, and a storm surge protection wall.
Kinder Morgan previously said that KBR had completed FERC FEED engineering for two liquefaction trains and associated facilities based on its design using APCI C3MR technology.
The project will enable the receipt, treatment, liquefaction, and export of up to 10.85 mtpa per year of LNG.