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Magnolia LNG status update

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LNG Industry,

Liquefied Natural Gas Ltd (LNG Ltd) has made several announcements regarding the status of Magnolia LNG, Louisiana, US.

Federal Energy Regulatory Commission

LNG Ltd has announced that the FERC’s Draft Environmental Impact Statement (DEIS) comment period expired on 8 September 2015. The DEIS public comment period exists to allow interested parties to review FERC’s environmental analysis and to provide any feedback they feel is necessary.

The National Marine Fisheries Service (NMFS) recommended resolution of certain dredging issues in advance of the FEIS, and from this Magnolia LNG is working with FERC, NMFS, and the Army Corps of Engineers on this matter.

EPC contract

LNG Ltd also announced that it has agreed a schedule with the KBR-SK joint venture (KSJV), which will conclude pricing negotiations and subsequent signing of the turnkey EPC contract in 4Q15.

KSJV will provide LNG Ltd a fixed price on the 8 million tpy project, which will offer certainty of pricing for a six month period from the EPC contract’s effective date. KSJV will also guarantee the LNG production and fuel gas efficiency of each train at the guaranteed production rate of 206 tph (1.7 million tpy equivalent) and fuel gas efficiency of 8%.

Tolling agreements

Regarding the status of its marketing efforts, Magnolia LNG entered into a binding offtake agreement with Meridian LNG Holdings Corp. for firm LNG production capacity of 1.7 million tpy, with a possible further 0.3 million tpy to be offered at Magnolia LNG’s discretion.

Marketing of binding offtake agreements for the remaining 6 million tpy of Magnolia LNG capacity continues with a number of investment-grade and non-investment grade counterparties. Certain negotiations are advanced and are processing though the internal investment decision authorisation processes, and current negotiated pricing remains at levels supporting EBITDA guidance of US$2.50 million Btu.

Edited from press release by

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