Magnolia LNG Project Update
Brisbane, Mar 14, 2014 AEST (ABN Newswire) - The Directors of Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) wish to provide a general update on the development progress of its wholly owned 8 million tonnes per annum (mtpa) Magnolia LNG Project (MLNG Project), in Lake Charles, Louisiana, United States of America (US). The MLNG Project is held through the Company's indirect 100% owned US subsidiary, Magnolia LNG, LLC (MLNG) and is being designed to comprise four LNG trains, each of 2 mtpa nominal (1.7 mtpa firm) LNG production capacity.
Attached is a copy of the February 2014 Monthly Progress Report, submitted to the US Federal Energy Regulatory Commission (FERC), as required under the FERC regulations.
MLNG remains on schedule to submit its application to FERC for the granting by FERC of full filing status in late April 2014.
Since the last report and up to this date, the following three significant milestones have been completed:
- MLNG executed a non-binding Tolling Agreement Term Sheet (Agreement), with AES Latin American Development, Ltd (AES) which is a wholly owned subsidiary of The AES Corporation Group (NYSE:AES). The Agreement is for LNG production capacity rights of between 800,000 tonnes per annum (tpa) and 1 million tpa from MLNG's proposed MLNG Project. AES is a Fortune 200 global power company with extensive investment in power generation throughout the Caribbean and Latin America (www.aes.com), including countries such as the Dominican Republic, Chile, El Salvador, and Colombia, all of which have Free Trade Agreements with the United States of America.
- The United States Department of Energy (DOE), has granted authorisation for MLNG to export an additional 4 mtpa of LNG, from the MLNG Project. This follows the DOE's initial approval granted on 26 February 2013 to export up to 4 mtpa of LNG to Free Trade Agreement (FTA) countries with the United States. The DOE authorisation is valid for first LNG sales to commence within 10 years and then for a period of 25 years from first LNG sales. LNG sales are permitted to all existing, and any future, countries that have, or enter into, a Free Trade Agreement with the Government of the United States.
- MLNG executed a legally binding pipeline capacity agreement, known in the United States as a Precedent Agreement (PA), with Kinder Morgan Louisiana Pipeline LLC (KMLP). The PA secured sufficient firm gas transportation service rights for the full 8 mtpa capacity of the MLNG Project, subject to the fulfilment of various preliminary conditions. KMLP's Open Season process closed on 7 March 2014. On the 12 March 2014, KMLP issued a formal notification to MLNG of the award of capacity to MLNG.
To view the Monthly Progress Report, please visit:
http://media.abnnewswire.net/media/en/docs/76759-ASX-LNG-670840.pdf
About Liquefied Natural Gas Ltd
Liquefied Natural Gas Limited (
ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:
- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and
- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
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