LNG Limited, the operator of the Magnolia LNG project in Lake Charles, Louisiana, has provided a quarterly report on its Q1 2014 operations.
A Technical Services Agreement (TSA) was executed with SK EC USA Inc., a wholly owned subsidiary of SK Engineering and Construction Company Ltd., (SKEC Group). The TSA relates to the ongoing engineering, procurement and construction (EPC) activities for Magnolia LNG’s (MLNG) planned 8 million tpa project in Lake Charles, Louisiana. The agreement follows a MoU signed by the two parties earlier this year.
The US Department of Energy (DOE) granted authorisation to export an additional 4 million tpa of LNG to FTA countries. This follows the DOE’s initial approval granted on 26 February 2013 to export up to 4 million tpa of LNG to FTA countries.
John G. Baguley has been appointed as Chief Operating Officer and Rick R. Cape has been appointed as Chief Commercial Officer for the MLNG project. Both will be based in Houston, US.
Three monthly progress reports were filed with the US Federal Energy Regulatory Commission (FERC) during Q1. FERC is the primary approval authority for US LNG projects in regard to permitting and environmental approvals.
MLNG established a project office in Lake Charles, Louisiana.
A placement of 10 million new shares in the company, at US$ 0.42 per share, raised US$ 4.20 million. The company reported a cash balance of US$ 12.5 million as at 31 March 2014.
Outlook and objectives
- To finalise development funding plans for the MLNG project through to Final Investment Decision targeted for late 2014, and Financial Close targeted for mid 2015.
- To continue to implement a full investor relations plan to enable Australian investors and shareholders to understand the potential value of the MLNG project.
- Conclude and execute definitive Tolling Agreements with Brightshore Overseas Limited, Gas Natural SDG SA, LNG Holdings Corporation, and other parties.
- Submit an application to the FERC and request that MLNG be permitted to file its application at the end of April 2014 for FERC’s authorisation for the siting, construction and ownership of the project.
Fisherman’s Landing LNG project
- Pending the securing of gas supply, the project in Gladstone, Queensland, is effectively on a care and maintenance program.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/28042014/lng_limited_q1_2014_report_490/