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Magnolia LNG receives FERC approval to commence site preparation

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LNG Industry,

LNG Limited has announced that its wholly owned subsidiary, Magnolia LNG LLC, has received Notice to Proceed (NTP) from the Federal Energy Regulatory Commission (FERC) to begin initial site preparation activities for the Magnolia LNG project.

The project – based in the Port of Lake Charles, Louisiana, US – involves the construction and operation of up to four LNG production trains, each of which will have a capacity of 2 million tpy or more, utilising the OSMR® process technology. The project will also include two 160 000 m3 full containment storage tanks, ship, barge and truck loading facilities and loading infrastructure. The LSTK EPC contract includes all elements of the project required to bring the facility into full guaranteed production operations. Magnolia LNG is fully permitted – having received its FERC order and both FTA and non-FTA approval from the Department of Energy (DOE). A final investment decision (FID) and the initiation of construction is expected upon the execution of sufficient offtake agreements to support financing.

The Chief Operating Officer at Magnolia, John Baguley, said: “We are appreciative to FERC for the issuance of the NTP on our request for authorisation to commence initial site preparation activities. FERC’s comprehensive review of our submittals and concurrence that we have complied with Conditions for these initial activities as required under the April 15, 2016 FERC Order demonstrate the project’s readiness.”

The Managing Director and CEO of LNG Limited, Greg Vesey, added: “The FERC NTP for initial site preparation is a key milestone for the project and underscores our position as ‘Shovel Ready’. Nevertheless, the pacing item for our Final Investment Decision (FID) and initiation of construction for Magnolia remains the finalisation of our LNG offtake agreements, and our team remains fully engaged in advancing this activity.”

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