Notice2022-11440
Freeport LNG Development, L.P. & FLNG Liquefaction 4, LLC; Notice of Request for Extension of Time
Primary source
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Published
May 27, 2022
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
Full Text
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<title>Federal Register, Volume 87 Issue 103 (Friday, May 27, 2022)</title>
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[Federal Register Volume 87, Number 103 (Friday, May 27, 2022)]
[Notices]
[Pages 32154-32155]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11440]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP17-470-000]
Freeport LNG Development, L.P. & FLNG Liquefaction 4, LLC; Notice
of Request for Extension of Time
Take notice that on May 16, 2022, Freeport LNG Development, L.P.
(Freeport LNG) and FLNG Liquefaction 4, LLC (FLIQ4), (together FLNG),
requested that the Federal Energy Regulatory Commission (Commission)
grant an extension of time, until August 1, 2028, to site, construct
and operate a fourth natural gas liquefaction train and pretreatment
unit, as well as interconnecting pipelines and utility lines (Train 4
Project or Project) to support additional liquefaction and export
operations at Freeport LNG's existing Quintana Island termina,) and
make the Project available for service, as authorized in the May 19,
2019 Order Issuing Certificate (Train 4 Order).\1\
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\1\ Freeport LNG Development, L.P. & FLNG Liquefaction 4, LLC,
167 FERC ] 61,155 (2019) (Train 4 Order).
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On September 10, 2020, the Commission granted FLNG an extension of
time until May 17, 2026, to complete construction of the Train 4
Project and make it available for service. Freeport LNG has completed
construction of, and placed in-service, liquefaction Trains 1-3 and
associated facilities at the Quintana Island terminal and at the
pretreatment facility site. However, construction of the Train 4
Project has not yet commenced, due in large part to delays stemming
from the COVID-19 pandemic. At the time the original extension of time
was granted, it was not expected that the pandemic would persist for as
long as it has, or that the resulting effects on global markets,
including global LNG markets, the global supply-chain and the financing
of large-scale infrastructure, would be so significant. In this regard,
the COVID-19 pandemic made it extremely difficult to secure long-term
LNG commercial commitments given the far-reaching economic effects of
the pandemic, and the uncertainty of future demand.
While FLNG originally projected a 42-month construction schedule
for the Train 4 Project, experience gained through the construction of
liquefaction Trains 1-3 and the EPC contract bid process for Train 4
suggests that the construction schedule for the Train 4 Project may be
closer to 48 to 56 months. Furthermore, potentially longer construction
schedules are possible as a
[[Page 32155]]
result of supply-chain disruptions due to COVID, the Ukraine invasion,
and other global supply/demand imbalances. However, given the
anticipated minimum 48-56 month period required to construct the Train
4 Project, it is not possible for FLNG to meet the current May 17, 2026
in-service date deadline. The inability to meet this schedule is
impeding FLNG's efforts to finalize commercialization of the Train 4
Project and structure the complex financing associated with reaching a
final investment decision, notwithstanding the significant upward trend
in natural gas markets and U.S. LNG demand. Certainty regarding FLNG's
ability to complete Project construction by the in-service deadline is
essential to completing commercialization of the Project, which is why
FLNG is filing for an extension now while time still remains on its
current authorization. The upfront, long-term commercial commitments
required to be made by LNG off-takers, and the unique nature of
financing LNG projects, necessitates such certainty.
FLNG requests that the Commission grant an approximately 26-month
extension of time so that FLNG may construct and place the Train 4
Project in service by no later than August 1, 2028. This timing, and
the commencement of service under FLIQ4's anticipated 20-year off-take
agreements in this time frame, is consistent with FLIQ4 and its
affiliate's current export authorization from the Department of Energy
for exports to non-free trade agreement nations, which extends through
December 31, 2050.\2\
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\2\ Freeport LNG Expansion, L.P. & FLNG Liquefaction 4, LLC,
Order Extending Export Term for Authorization to Non-Free Trade
Agreement Nations Through December 31, 2050, DOE/FE Order No. 4374-
A, FE Docket No. 18-26-LNG (Oct. 21, 2020).
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This notice establishes a 15-calendar day intervention and comment
period deadline. Any person wishing to comment on FLNG's request for an
extension of time may do so. No reply comments or answers will be
considered. If you wish to obtain legal status by becoming a party to
the proceedings for this request, you should, on or before the comment
date stated below, file a motion to intervene in accordance with the
requirements of the Commission's Rules of Practice and Procedure (18
CFR 385.214 or 385.211) and the Regulations under the Natural Gas Act
(18 CFR 157.10).
As a matter of practice, the Commission itself generally acts on
requests for extensions of time to complete construction for Natural
Gas Act facilities when such requests are contested before order
issuance. For those extension requests that are contested,\3\ the
Commission will aim to issue an order acting on the request within 45
days.\4\ The Commission will address all arguments relating to whether
the applicant has demonstrated there is good cause to grant the
extension.\5\ The Commission will not consider arguments that re-
litigate the issuance of the certificate order, including whether the
Commission properly found the project to be in the public convenience
and necessity and whether the Commission's environmental analysis for
the certificate complied with the National Environmental Policy Act.\6\
At the time a pipeline requests an extension of time, orders on
certificates of public convenience and necessity are final and the
Commission will not re-litigate their issuance.\7\ The OEP Director, or
his or her designee, will act on all of those extension requests that
are uncontested.
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\3\ Contested proceedings are those where an intervenor disputes
any material issue of the filing. 18 CFR 385.2201(c)(1) (2019).
\4\ Algonquin Gas Transmission, LLC, 170 FERC ] 61,144, at P 40
(2020).
\5\ Id. at P 40.
\6\ Similarly, the Commission will not re-litigate the issuance
of an NGA section 3 authorization, including whether a proposed
project is not inconsistent with the public interest and whether the
Commission's environmental analysis for the permit order complied
with NEPA.
\7\ Algonquin Gas Transmission, LLC, 170 FERC ] 61,144, at P 40
(2020).
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In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (<a href="http://www.ferc.gov">http://www.ferc.gov</a>) using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to Commission's Public Reference
Room, due to the proclamation declaring a National Emergency concerning
the Novel Coronavirus Disease (COVID-19), issued by the President on
March 13, 2020. For assistance, contact FERC at
<a href="/cdn-cgi/l/email-protection#783e3d2a3b37161411161d2b0d0808170a0c381e1d0a1b561f170e"><span class="__cf_email__" data-cfemail="bef8fbecfdf1d0d2d7d0dbedcbceced1cccafed8dbccdd90d9d1c8">[email protected]</span></a> or call toll-free, (886) 208-3676 or TYY,
(202) 502-8659.
The Commission strongly encourages electronic filings of comments,
protests and interventions in lieu of paper using the ``eFile'' link at
<a href="http://www.ferc.gov">http://www.ferc.gov</a>. Persons unable to file electronically may mail
similar pleadings to the Federal Energy Regulatory Commission, 888
First Street, NE, Washington, DC 20426. Hand delivered submissions in
docketed proceedings should be delivered to Health and Human Services,
12225 Wilkins Avenue, Rockville, Maryland 20852.
Comment Date: 5:00 p.m. Eastern Time on June 7, 2022.
Dated: May 23, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-11440 Filed 5-26-22; 8:45 am]
BILLING CODE 6717-01-P
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