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FERC rejects appeal against Magnolia LNG project

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LNG Industry,

The US Federal Energy Regulatory Commission (FERC) has denied the Sierra Club’s request for rehearing regarding its decision to grant Magnolia LNG LLC authority to site, construct, and operate new facilities at a proposed LNG terminal in Calcasieu Parish, Louisiana, US.

Magnolia LNG is a wholly owned subsidiary of Liquefied Natural Gas Ltd (LNG Ltd).

FERC rejected the Sierra Club’s arguments, basing its rejection largely on recent decisions from US federal appeals courts that have found FERC’s approach is proper and consistent with US Supreme Court precedent. As a result of the issuance of the Order on Rehearing, the US Department of Energy (DOE) is now able to continue processing Magnolia LNG’s pending application for LNG exports to countries that do not have free trade agreements (FTAs) with the US.

LNG Ltd’s Managing Director and Chief Executive Officer (CEO), Gregory Vesey, said: "We are pleased with the FERC’s decision on this matter and look forward to the US DOE processing Magnolia LNG’s pending application to export LNG to non-FTA countries.”

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