Magnolia LNG receives FERC authorisation for gas export facility construction in US

Magnolia LNG, the wholly-owned subsidiary of Liquefied Natural Gas (LNGL), has secured the US Federal Energy Regulatory Commission (FERC) authorisation for the construction of liquefied natural gas export facility in Lake Charles, Louisiana.

The authorisation will allow the company to site, construct, and operate facilities in a bid to liquefy and export domestically produced gas from its LNG terminal.

As part of the project, Magnolia LNG plans to construct and operate up to four liquefaction production trains. Each of them will have a capacity of 2 mtpa and use the company’s OSMR LNG process technology.

Construction and operation will include two full containment storage tanks with 160,000m³ capacity, ship, barge and truck loading facilities, in addition to supporting infrastructure.

Separately, the Louisiana Department of Environmental Quality (LDEQ) approved the air permit for the Magnolia LNG.

FERC also authorised the Kinder Morgan Louisiana Pipeline (KMLP Pipeline) to install compression and other related facilities on the KMLP Pipeline, facilitating the transportation of full feed gas volumes to the Magnolia LNG project.

LNGL managing director and CEO Greg Vesey said: "We are pleased to receive the FERC Order and the air permit from LDEQ.

"Both of these items are important milestones as we progress the Magnolia LNG project towards a final investment decision.

"We look forward to the US Department of Energy (DOE) processing Magnolia LNG’s pending application to export LNG to countries that do not have a free trade agreement (FTA) with the United States."

The export facility will be constructed by the KBR-SKE&C joint venture under an EPC contract.

Magnolia LNG project is 100% owned by Magnolia LNG and consists of an 8 mtpa or greater plant on a 115-acre site.

Feed gas supply for the project will come from the US Gulf Coast gas market through several gas suppliers delivered through KMLP.