LNG Limited has received notice from the US Department of Energy (DOE) that the agency has granted authorisation for the company’s wholly owned subsidiary, Magnolia LNG LLC, to expand its export capacity to 8.8 million tpy of LNG to countries that have free trade agreements (FTA) with the US.
This approval provides an 0.8 million tpy increase from the DOE’s initial FTA approval orders. The DOE’s initial approval was granted on 26 February 2013 allowing Magnolia to export up to 4 million tpy of LNG to FTA countries. A subsequent 5 March 2014 order granted approval for an additional 4 million tpy.
The DOE authorisation is valid for LNG sales over a term of up to 25 years commencing on the earlier of the date of first export or ten years from the date of the initial authorisation (26 February 2023).
Magnolia previously received approval from the DOE to export LNG to countries with which the US has not entered into a free trade agreement (non-FTA approval) on 30 November 2016.
Greg Vesey, LNGL Managing Director and CEO, advised, “We are very pleased to have successfully received DOE’s approval to export more gas to FTA countries from Magnolia. This approval, coupled with FERC’s awaited authorisation for the increase, gives us added flexibility for our customers and will provide additional value for our shareholders. We thank the DOE staff for their prompt response. Our discussions with offtakers are at an advanced stage, and we know they will see this action by the DOE as a positive development for Magnolia.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25032019/lng-limited-to-expand-magnolia-export-capacity/