Oct 14 (Reuters) - U.S. energy regulators extended to June 2028 the time Sempra Infrastructure has to complete the proposed Port Arthur liquefied natural gas (LNG) export plant in Texas.
Sempra Infrastructure, a unit of California energy company Sempra Energy, requested the extension in July that the U.S. Federal Energy Regulatory Commission (FERC) approved on Thursday.
FERC first approved the construction of Port Arthur in April 2019, requiring Sempra to complete the LNG plant and associated pipelines by April 2024.
Like other projects that sought more time to complete their projects this year, such as Freeport LNG, Sempra said its project was delayed by the adverse market conditions and logistical delays caused by the COVID-19 pandemic.
Global demand for LNG has rebounded in 2022 with gas prices in Europe up about 111% so far this year as countries seek to wean themselves off gas from Russia after Moscow's Feb. 24 invasion of Ukraine.
In addition to Port Arthur, Sempra Infrastructure, which owns part of the operating Cameron LNG plant in Louisiana, is building an export plant at its Costa Azul LNG import facility in Mexico.
The company is also developing second phases for Cameron and Costa Azul and other sites in Mexico, including Vista Pacifico and Salina Cruz.
Global LNG demand has increased every year since 2012 and hit record highs every year since 2015 mostly due to fast-rising demand in Asia.
But in recent years, global gas buyers have been slow to sign new long-term contracts needed to finance the multibillion-dollar projects due to overbuilding of LNG export terminals in 2019, coronavirus demand destruction, the collapse of global gas prices in 2020, and the U.S.-China trade war during former U.S. President Donald Trump's administration.