Liquefied Natural Gas Limited has announced that its subsidiary, Magnolia LNG, has signed a Tolling Term Sheet with LNG Holdings Corporation, in relation to the Magnolia Liquefied Natural Gas (LNG) Project in Lake Charles, Louisiana. The Term Sheet provides for a proposed 20 year Tolling Agreement, covering a production capacity of 1.7 million tpa.
Under the agreement, LNG Holdings will be responsible for delivering gas to the Magnolia project for liquefaction, storage and delivery onto LNG tankers. LNG Holdings will pay Magnolia a fixed monthly fee over the 20-year period, in addition to other operating and maintenance costs.
The Magnolia LNG project is made up of four gas liquefaction trains, each with a capacity of 1.7 million tpa. The company expects to receive final permits for the project in 2015, with commencement of construction in 2015, and initial start up in 2018.
LNG export approval
Magnolia has already received approval from the US Department of Energy (DOE) to export 4 million tpa of LNG to Free-Trade Agreement (FTA) countries. The company has also applied to increase the current approval by an additional 4 million tpa, and has requested approval to export 8 million tpa of LNG to non-FTA countries.
LNG Holdings, together with Höegh LNG, will deliver liquefied natural gas from the Magnolia project to US domestic and international markets using their planned Floating Storage and Regasification Unit (FSRU) network. Subject to approvals, Magnolia will supply markets including the Port Dolphin project in Florida, the Port Ambrose prokect off Long Island, New York, and the Port Meridian LNG import terminal in the UK.
“This is another valuable step forward for the M[agnolia] LNG Project. In addition to plans to supply LNG to the UK, we are particularly pleased to embrace a unique United States domestic LNG supply option, which has the potential to materially benefit consumers from Florida to New York”, commented Magnolia president, Maurice Brand.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26112013/magnolia_increases_production_capacity_491/