Magnolia LNG Receives Draft Environmental Impact Statement

abarrelfullabarrelfull wrote on 24 Jul 2015 06:04
Tags: lng lng-ltd n-america usa

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The United States Federal Energy Regulatory Commission (FERC) issued the Draft Environmental Impact Statement (DEIS) for the Magnolia LNG project on Friday, 17 July 2015.  The DEIS is a critical milestone for the Magnolia LNG project, incorporating comments from FERC and other cooperating federal agencies.  In completing the work necessary to issue the DEIS, the FERC analysed publicly available data and data provided by both Magnolia LNG and Kinder Morgan Louisiana Pipeline LLC (KMLP) associated with the construction and operation of the Magnolia LNG project and natural gas pipeline infrastructure required to deliver natural gas to the operating liquefaction terminal.

The FERC staff concluded that construction and operation of the proposed projects  would result in limited adverse environmental impacts, but these impacts would be reduced to less‐than‐significant levels with the implementation of Magnolia LNG’s and KMLP’s proposed mitigations and the additional measures recommended in the DEIS.   

FERC set 8 September 2015 as the deadline for receipt of public comments on the DEIS.   Based on the Notice of Schedule for Environmental Review, previously issued by FERC on 30 April 2015, the Final Environmental Impact Statement (FEIS) is expected to be issued by FERC on 16 November 2015.
LNG Limited’s Managing Director and CEO, Mr. Maurice Brand said, “We are very pleased with our progress on the FERC regulatory aspects of the project and look forward to the receipt of the FEIS in November this year. Magnolia LNG is planning for Financial Close in first quarter 2016 with first LNG in December 2018”.

The entire FERC announcement posted on 17 July 2015 may be accessed at:


The Magnolia LNG project is 100% owned by Magnolia LNG LLC, which is a wholly owned subsidiary company of Liquefied Natural Gas Limited. The project comprises the proposed development of an 8‐mtpa LNG project on a 115‐acre site, located on an established LNG shipping channel in the Lake Charles District, State of Louisiana, United States of America. The project is based on the development of four LNG production trains of 2 mtpa each using the Company’s wholly owned OSMR® LNG process technology.  

Magnolia LNG’s business model provides liquefaction services to LNG buyers who pay a monthly fixed capacity fee, plus all LNG plant operating and maintenance costs.   LNG buyers contract for liquefaction services under two contract models – a Liquefaction Tolling Agreement, whereby the LNG export terminal is only responsible for processing natural gas into LNG, and an LNG Sales and Purchase Agreement under which the customer buys LNG on a free on board basis (FOB).   


  • Liquefied Natural Gas Limited is an ASX listed company (Code: LNG and OTC ADR: LNGLY) whose portfolio consists of 100% ownership of the following companies:
    • Magnolia LNG LLC (Magnolia LNG), a US‐based subsidiary, which is developing an 8 mtpa LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
    • Bear Head LNG Corporation (Bear Head), a Canadian based subsidiary, which is developing an 8 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion; 
    • Gladstone LNG Pty Ltd, a subsidiary which is progressing the 3.8 mtpa Fisherman’s Landing LNG (FLLNG) Project at the Port of Gladstone in Queensland, Australia; and
    • LNG Technology Pty Ltd, a subsidiary which owns and develops the Company’s OSMR® LNG liquefaction process, a mid‐scale 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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