The United States Federal Energy Regulatory Commission (FERC) has granted Eagle LNG Partners, a Texas-based energy player, an extension of the deadline to finish the construction of the proposed small-scale liquefied natural gas (LNG) facility in Jacksonville, Florida.
Thanks to an extension granted by the FERC on September 10, the previously authorized Jacksonville LNG project – originally scheduled to be completed on September 19, 2024 – has been bumped to September 19, 2029.
In its extension request, Eagle LNG explained that the original deadline was impossible to meet due to factors beyond its control, one of the main ones being the COVID-19 pandemic, which created “an extremely challenging environment for the negotiation and execution of contracts,” lasting several years.
Furthermore, the pandemic-induced inflation and supply chain issues are said to have increased project costs, forcing Eagle LNG to verify the project’s front-end engineering design (FEED) and update the cost estimate. The firm says the $83 million it spent entailed costs such as site acquisition, property taxes, facility engineering, technical consulting services, safety and marine consulting services, legal services, and community relations activities.
The Texan player anticipates that the construction of the Jacksonville project will take 24 to 36 months, with construction starting after reaching a final investment decision (FID), which is still pending. To make that FID, the firm and its investors need assurances the project’s FERC authorization will provide enough time to complete the construction.
The proposed small-scale LNG facility is intended to serve domestic customers and those in the Caribbean basin. The project will have a processing capacity of 1.65 million gallons of LNG per day, with onsite LNG storage of 12 million gallons. According to the developer, it has been designed for minimal environmental impact.
Using existing and expanded pipelines, the natural gas will be transported to the Jacksonville plant where it will be liquefied and temporarily stored. Afterward, it will be periodically loaded onto ocean-going vessels for export to countries currently using heavy fuel oil or diesel for power generation, as well as for use in domestic marine fueling.
Recently, a reauthorization by FERC for NextDecade’s Rio Grande LNG export project, consisting of the Rio Grande terminal and Rio Bravo pipeline, was revoked by the U.S. Court of Appeals for the D.C. Circuit.
If the court’s decision is upheld, the developer claims global energy security could be jeopardized since Rio Grande LNG’s long-term supply capacity totals almost 6% of the current global supply.