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Magnolia LNG on target for first LNG in 2018

LNG Industry,

Liquefied Natural Gas Ltd (LNG Ltd) has provided a general update on the development progress of the 8 million tpy Magnolia LNG project (MLNG), in Louisiana, US.

Offtake agreements

Negotiations are ongoing with two parties for approximately 4 million tpy. Magnolia LNG is confident it will close bankable offtake agreements for the full 8 million tpy of capacity, with initial LNG production from Train 1 forecasted for late 2018.

Federal Energy Regulatory Commission (FERC)

FERC’s progress towards MLNG’s draft environmental impact statement (EIS) was announced on 19 March 2015. The FERC will issue a schedule of environmental review, followed by the issue of a draft EIS, once it is satisfied it has received all required information from MLNG.

EPC contract

The engineering, procurement and construction (EPC) joint venture (JV) between KBR and SKE&C was announced on 2 March 2015. The JV should complete all pre-EPC contract activities in 2Q15, with a resulting lump sum fixed price EPC contract agreed thereafter.

Commencement of an ‘early works’ programme in the second half of 2015, comprising initial detailed engineering and ordering of long-lead equipment items, accelerates site work schedule following receipt of the notice to proceed from the FERC.


Maurice Brand, Magnolia LNG President, commented: “I am pleased with the solid progress by Magnolia LNG and the contribution being made by management and recently appointed staff.

“In order to assist Magnolia LNG management to ensure the above timetable is realised and Magnolia achieves financial close in 2015, I will be relocating to Houston at the end of April 2015.”

Adapted from press release by Katie Woodward

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