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Magnolia LNG construction approved by FERC

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LNG Industry,

Magnolia LNG, LLC – a wholly owned subsidiary of Liquefied Natural Gas Ltd (LNG Ltd) – has received authorisation from the US Federal Energy Regulatory Commission (FERC) to site, construct and operate facilities that will liquefy and export domestically produced natural gas. The facilities will be located at the Magnolia LNG terminal in Lake Charles District, Louisiana, US. In addition to this, the Louisiana Department of Environmental Quality (LDEQ) approved the air permit for Magnolia LNG.

Greg Vesey, the Managing Director and CEO of LNG Ltd, said: “We are pleased to receive the FERC order and the air permit from LDEQ. Both of these items are important milestones as we progress the Magnolia LNG project towards a final investment decision. We look forward to the US Department of Energy (DOE) processing Magnolia LNG’s pending application to export LNG to countries that do not have a free trade agreement (FTA) with the US.”

In a related matter, the Kinder Morgan Louisiana Pipeline LLC (KMLP Pipeline) was granted authorisation by FERC to install compression facilities – as well as other facilities – on the pipeline, which will facilitate the transportation of full feed gas volumes to the Magnolia LNG project.

Magnolia LNG proposes to construct four liquefaction trains. Each train will have a capacity of a 2 million tpy of LNG or more, and will use the company’s OSMR® technology. Two full containment storage tanks – each with a capacity of 160 000 m3 – will also be constructed, as well as ship, barge and truck loading facilities and related infrastructure.

The KBR-SKE&C joint venture (KSJV) will construct the facility under a lump sum turnkey engineering, procurement and construction (EPC) contract.

Vesey added: “Our primary focus remains to complete marketing of Magnolia LNG’s offtake capacity, finalise financing arrangements, and progress towards construction.”

Edited from press release by David Rowlands

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