Magnolia LNG Project Update
Perth, June 2, 2014 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) (Company) advises that on 29 May 2014 the United States Department of Energy (DOE) announced proposed changes to the procedures it will use to process applications to export LNG to non-free trade agreement (non-FTA) countries. The DOE announcement included three main features:
(1) Process Changes. DOE's proposed changes would: (a) eliminate the current practice of issuing conditional orders; (b) result in DOE no longer processing applications based on the DOE queue (date received) established in December 2012; and (c) base the sequence in which DOE issues final decisions solely on a project's completion of its environmental review process required under the National Environmental Policy Act (NEPA), which for Magnolia LNG is undertaken by the Federal Energy Regulatory Commission (FERC). These proposed changes are now subject to public comment, which are required by 21 July 2014. Magnolia LNG will file comments in response to the proposed process changes.
(2) Economic Studies. DOE also announced that it plans to: (a) undertake a new macroeconomic study "to gain a better understanding of how potential U.S. LNG exports between 12 and 20 billion cubic feet per day (Bcf/d) could affect the US public interest"; and (b) have the Energy Information Administration (EIA) update its previously prepared 2012 LNG Export Study. Once completed both of these studies will be made available for public comment.
(3) Environmental Reports. In addition, DOE announced and made available for public comment two new reports on environmental issues (namely, lifecycle Greenhouse Gas (GHG) emissions analysis associated with exported LNG and impacts of upstream hydraulic fracturing). DOE confirms that these issues go beyond what is required for its review under NEPA but wanted to address some of the concerns expressed by the public. Public comments on the proposed two additional environmental reports are also due by 21 July 2014. Magnolia LNG will also be making a submission in relation to the two environmental reports.
On the 29 May 2014 the Company released a presentation that referenced the potential for Magnolia LNG to receive non-FTA approval in 2015. Refer to Table 1 for a summary of the DOE and FERC approvals for the development of the Magnolia LNG Project. Table 2 shows the Status of LNG Projects in the United States and that Magnolia LNG, subject to receipt of all approvals, is on target to produce first LNG in 2018 and therefore may be in the first five LNG US export projects to begin LNG production.
Managing Director and CEO Comments
In response to the DOE issuance, Mr Maurice Brand, Company Managing Director and CEO said "While Magnolia LNG continues to review and assess the US Department of Energy's 29 May proposal, Magnolia LNG generally supports regulatory changes that have the effect of expediting the approval for non-FTA LNG exports for those projects like Magnolia LNG that advance through the FERC environmental and safety regulatory process. Magnolia LNG looks forward to filing comments with DOE expressing its views on the agency's proposal while it continues to press ahead diligently with its pending FERC application."
About the Magnolia LNG Project
The Magnolia LNG Project is 100% owned by Magnolia LNG LLC, which is a wholly owned subsidiary of the Company. The project comprises the proposed development of an 8 mtpa LNG project on a 116 acre site, in an established LNG shipping channel in the Lake Charles District, State of Louisiana, US.
The development is based on the development of 4 x 2 mtpa LNG production trains using the Company's wholly owned OSMR(R) LNG process technology and the completed LNG plant front end engineering and design of the Company's Gladstone Fisherman's Landing LNG Project in Queensland, Australia.
The business model being adopted for the Magnolia LNG Project is to provide liquefaction services to LNG buyers who pay a monthly fixed capacity fee, plus all project operating and maintenance costs. In addition, each LNG Tolling Party is responsible for supplying and transporting gas to the Magnolia LNG Project at its own expense.
For further information on the Magnolia LNG project, please see our website:
http://www.magnolialng.com
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.
| ||
|
