Sempra wins extension on Texas LNG project; NextDecade also seeks extension -Breaking
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© Reuters. FILE PHOTO – Sempra Energy Headquarters is shown in downtown San Diego (California), USA, May 17, 2018. REUTERS/Mike BlakeBy Marcy de Luna
(Reuters] – The Federal Energy Regulatory Commission said that on Thursday, it granted Sempra Energy (NYSE:) a request for an extension in order to construct two pipelines to Texas and Louisiana that will connect to a Texas liquefied LNG plant. NextDecade Corp (NASDAQ:) Corp also requests more time to develop a Texas LNG project.
Sempra Energy has been granted an extension to March 31st, 2023 for its two pipelines which will link to Port Arthur’s LNG plant. NextDecade Corp applied Wednesday for an extension of its Rio Grande LNG Project in Brownsville Texas, up to November 2028.
NextDecade didn’t respond to my request for comment.
NextDecade also announced on Wednesday it had signed a 20-year agreement to supply 1.5 Million Metres per Annum (MTPA), LNG from Rio Grande to a unit at China’s ENN Natural Gas Co.
Numerous LNG developers announced this year new agreements that may allow for the construction of proposed plants. Energy Transfer ENN (NYSE:) has signed a 2.7 MTPA contract with ENN, while Mexico Pacific Ltd got a 2 MPTA agreement from Chinese gas- and power supplier Guangzhou Development Co.
NextDecade announced in January that a decision on financial investments for Rio Grande LNG would not be made until the second half. It was initially expected that it would start producing LNG around 2023.
A dozen companies signaled their plans to make financial investments in projects at the beginning of 2020, and again in 2021. Only Costa Azul, Sempra in Mexico, started construction in 2020. Many others were pushed to 2022.
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