The US Department of Energy has granted Liquefied Natural Gas Ltd., better known as LNG Ltd., authorization to export and begin building a $4.3 billion Magnolia LNG Project proposed facility in Lake Charles, Louisiana.
Magnolia LNG sits on 115 acres adjacent to the Calcasieu Ship Channel, an established shipping channel in the Lake Charles District. The project plan includes the development of four LNG production trains of 2 mtpa each. A joint venture between KBR and SKE&C is undertaking EPC contracting efforts for Magnolia LNG, with KBR leading the joint venture team. The project will be constructed under a fixed-price, turnkey EPC contract.
Feed gas supply will come from the highly liquid US Gulf Coast gas market via several gas suppliers.Gas supply will be delivered to the site via the Kinder Morgan Louisiana Pipeline (KMLP). Magnolia LNG has entered into a 20-year binding pipeline capacity agreement with Kinder Morgan Louisiana Pipeline LLC to deliver gas to the site for the full 8 mtpa of the project.
The Magnolia LNG project received its FERC Order under Section 3 of the Natural Gas Act on April 15, 2016, authorizing the project to site, construct, and operate facilities necessary to liquefy natural gas at the proposed site in Lake Charles, Calcasieu, Louisiana. Final investment decision and initiation of construction are expected upon execution of sufficient offtake agreements to support financing.
Greg Vesey, LNGL Managing Director and CEO, advised, “Our Magnolia project team is very pleased to have successfully received this final piece of the regulatory framework enabling our Magnolia LNG project to export US-produced natural gas to the global energy market. We recognize and appreciate the hard work and timely efforts put in by the DOE and other cooperating agencies in reaching this decision. Going forward, we are well underway in progressing on the final offtake milestones to enable us to move this leading energy efficient, innovative and low-cost project into the construction and operations phases.”
Liquefied Natural Gas Limited’s (LNGL) corporate offices are based in Perth, Western Australia, with offices in Houston, Texas; Lake Charles, Louisiana; and Halifax, Nova Scotia.
