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Magnolia LNG welcomes LNG export changes

Published by , Senior Editor
LNG Industry,

Liquefied Natural Gas Limited (LNG Ltd) has welcomed the US Department of Energy’s (DOE) decision to revise procedures for processing applications to export LNG to non-Free Trade Agreement (Non-FTA) countries.

The DOE’s revised procedures of 15 August only apply to pending long-term non-FTA LNG export applications. Magnolia LNG, a wholly owned subsidiary of LNG Ltd, filed its application to export 8 million tpa of LNG to non-FTA countries with the DOE in October 2013. The LNG export application is currently pending with the DOE.

Securing non-FTA approval will allow LNG Ltd’s proposed LNG Toiler's to export their LNG to all major global LNG markets.

LNG Ltd’s Managing Director, Maurice Brand, said: "DOE reiterates that the procedural changes will enable it to focus on projects that are more likely to advance to commercial operation, referencing commencement and continued progress through and completion of the National Environmental Policy Act (NEPA) process as an indicator. Importantly, focusing on these real projects will aid DOE in assessing cumulative market and other impacts. By placing the most viable projects first based on objective factors like the completion of the robust NEPA review, DOE's new procedures ensure that such projects are not disadvantaged by the creation of an artificially high cumulative non-FTA export volume from projects that have not made significant progress towards securing authorisation for the physical export facilities.

"Magnolia LNG is well advanced in the NEPA process at FERC. Based on the current state of the regulatory review, we expect to receive the draft Environmental Impact Statement (DEIS) in 2014, and the Final Environmental Impact Statement (FEIS) likely will issue approximately 4 months after the DEIS. With [the] announced final revised DOE process, Magnolia LNG is confident that it will advance more quickly to its non-­FTA authorisation because the trigger for commencement of the non-FTA process now is based on completion of the FERC NEPA process, rather than the old queue.”

Adapted from press release by

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