Magnolia LNG Files FERC Application for Louisiana Project
Perth, May 1, 2014 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) (LNGL or the Company) advises that its wholly owned subsidiary, Magnolia LNG, LLC, has filed an application with the US Federal Energy Regulatory Commission (FERC) seeking authorisation for the siting, construction, ownership and operation of the proposed Magnolia LNG Project. This project is located along the Calcasieu River, near Lake Charles, Louisiana, United States of America. (refer to figure 1 in link below)
The FERC filing follows extensive work performed by the LNGL and Magnolia LNG teams on Front End Engineering Design (FEED), pre-filing consultation and preparation of 13 draft Resource Reports for FERC. The work, which has been ongoing since early 2013, also has involved consultation with other federal, state and local agencies, such as the Louisiana Department of Environmental Quality, U.S. Department of Transportation and the U.S. Coast Guard. The FERC filing process is an established and well-defined regulatory process.
Magnolia LNG anticipates receiving all approvals during 2015. Such approvals will be a key requirement for Financial Close. Construction will commence shortly thereafter with first LNG exports planned for the second half of 2018.
The Project will provide a direct benefit for the local southwest Louisiana economy, resulting in 70 direct jobs, 175 indirect jobs and up to 1,000 jobs during the construction phase of the first two trains.
Managing Director and Joint CEO Comments
The Company's Managing Director, Maurice Brand, said "This is a significant milestone for the Magnolia LNG Project, placing it among a small group of projects to have formally filed an application with FERC. We are committed to meeting all FERC safety and environmental requirements during construction and operation and anticipate Financial Close of the Project in mid-2015. The Magnolia LNG Project will bring jobs and economic growth to southwest Louisiana".
"Moving forward, FERC will prepare an Environmental Impact Statement (EIS) to satisfy the National Environmental Policy Act (NEPA) with the input of the public and other cooperating agencies. Our regulatory team looks forward to working with FERC and other agencies in this process".
"During this time, the focus of LNG Limited's and Magnolia LNG's management teams will be to deliver a bankable EPC contract and finalise legally binding Liquefaction Tolling Agreements with counterparties", said Mr Brand.
About the Magnolia LNG Project
The Magnolia LNG Project is 100% owned by Magnolia LNG LLC, which is a wholly owned subsidiary of Liquefied Natural Gas Limited. The project comprises the proposed development of an 8 mtpa LNG project on a 115-acre site, in an established LNG shipping channel in the Lake Charles District, State of Louisiana, United States of America.
The development is based on the development of 4 x 2 mtpa LNG production trains using the Company's wholly owned OSMR® 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 LNG plant 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.
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-LNG-676455.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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