The U.S. Federal Energy Regulatory Commission (FERC) has approved a pivotal five-year extension for Gulf LNG, allowing until 2029 to complete its transformation of a Mississippi site from an import to a liquefied natural gas (LNG) export facility.
This decision underscores the U.S.’s dominant role as the leading global LNG exporter and reflects adjustments to the evolving energy sector dynamics. Initially greenlit in July 2019, the project encountered unforeseen delays necessitating the revised timeline.
Gulf LNG attributed these setbacks to the pandemic’s disruptive impact on construction activities and international commercial engagements. Additional delays stem from ongoing litigation with import customers, complicating the finalization of essential offtake contracts, though resolution is anticipated within the year.
Ownership of Gulf LNG is divided, with Kinder Morgan and various investment entities including Blackstone and Warburg Pincus holding stakes. The facility’s upgrade plan involves constructing two liquefaction trains that will transform 1.4 billion cubic feet of natural gas daily into about 10.9 million tonnes of LNG each year, marking it as a significant contributor to both the U.S. and global energy supplies.
Records indicate the last import to the facility occurred in 2011, and this shift towards export capabilities is strategically positioned to meet the increasing global demand for cleaner energy sources. This extension provides Gulf LNG with the necessary leeway to overcome current challenges, strategically positioning the U.S. to maintain its supremacy in the global LNG market.
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