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FERC prepares EIS for Magnolia LNG production capacity increase

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LNG Industry,

The Federal Energy Regulatory Commission (FERC) has announced that it has prepared a final supplemental environmental impact statement (EIS) for the Magnolia LNG production capacity amendment proposed by Magnolia LNG, LLC.

According to the statement, Magnolia LNG requests authorisation pursuant to Section 3(a) of the Natural Gas Act (NGA) to increase the LNG production capacity of the previously authorised Magnolia LNG Project in Calcasieu Parish, Louisiana, US, (Docket No. CP14-347-000) from 8 million metric tpy to 8.8 million metric tpy. The increased production capacity would be achieved through the optimisation of Magnolia LNG’s final design, including additional and modified process equipment. All new or reconfigured facilities would be within the footprint of the authorised Magnolia LNG terminal site.

The final supplemental EIS was prepared in compliance with the requirements of the National Environmental Policy Act (NEPA), the Council on Environmental Quality regulations for implementing NEPA in 40 Code of Federal Regulations, Parts 1500–1508 (40 CFR 1500-1508), and FERC regulations implementing NEPA (18 CFR 380). FERC claims the US Department of Energy, US Coast Guard, and US Department of Transportation Pipeline and Hazardous Materials Safety Administration (USDOT PHMSA) participated as cooperating agencies in the preparation of the supplemental EIS.

According to the statement, FERC staff carried out a preliminary engineering and technical review of the proposed changes associated with the production capacity amendment. By incorporating the mitigation measures identified in the supplemental EIS, FERC staff concludes that the LNG terminal design would include sufficient layers of protection or safeguards that would reduce the risk of potentially hazardous scenarios from developing into an event that could impact the offsite public.

USDOT PHMSA will reportedly issue a letter of determination regarding the facilities’ compliance with siting requirements for LNG facilities in 49 CFR 193 Subpart B. In addition to this, the facilities would be subject to the USDOT PHMSA’s inspection and enforcement program. FERC staff concludes that the modifications associated with the production capacity amendment, with the additional mitigation measures recommended in the supplemental EIS, would continue to avoid or reduce impacts to less than significant levels.

The FERC commissioners will take staff’s recommendations into consideration once they make a decision on the project.

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