Energy Transfer, a US-based pipeline operator, is seeking new and expedited export licence for its Lake Charles, Louisiana, liquefied natural gas (LNG) plant, reported Reuters, citing a filing with the US Department of Energy (DOE).
In May, a three-year extension to Energy Transfer’s initial licence was rejected by the DOE on the grounds that the request did not meet the requirements for a second extension.
Since 2012, Energy Transfer has been working on the proposed multibillion-dollar Lake Charles LNG facility.
In its most recent application, the company said it would not be possible for it to complete the plant by the present license’s 2025 date.
Energy Transfer hopes to get a new licence by 19 February 2024, which would give it an additional seven years to finish the project.
The LNG pipeline operator claimed that unanticipated delays and the decision to add a carbon capture and sequestration component to the facility were among the reasons for the delay.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Requests for comments from Energy Transfer were not answered.
Currently, Energy Transfer has long-term contracts to provide 7.9 million metric tonnes per year (mtpa) of the 16.45mtpa capacity of the planned facility.
According to Energy Transfer’s DOE proposal, two of its prospective clients are in Japan and South Korea, and depend on the project to fuel their power plants.
“A delay in receiving approval of this application on an expedited basis will likely result in the exercise of termination rights in existing offtake agreements”, Energy Transfer was quoted by the news agency as saying.