Magnolia LNG LLC, a wholly owned subsidiary of Liquefied Natural Gas Ltd., Perth, has filed an application with the US Federal Energy Regulatory Commission seeking authorization for the siting, construction, ownership, and operation of the proposed Magnolia LNG project along the Calcasieu River, near Lake Charles, La.
The FERC filing follows extensive work performed by Magnolia LNG since early 2013 on front-end engineering design, pre-filing consultation, and preparation of 13 draft Resource Reports for FERC.
The work also has involved consultation with other federal, state and local agencies, such as the Louisiana Department of Environmental Quality, US Department of Transportation, and the US Coast Guard, Magnolia said.
Magnolia LNG said it anticipates receiving all approvals during 2015, which will be a key requirement for financial close. Construction will start shortly thereafter, with first LNG exports planned for second-half 2018.
LNG Ltd. and Magnolia LNG will now focus on securing an EPC contract and finalizing legally binding liquefaction tolling agreements with counterparties.
LNG Ltd. in January signed a binding pipeline capacity agreement with Kinder Morgan Louisiana Pipeline (KMLP), securing sufficient firm gas transportation for the plant’s full 8-million tonne/year (tpy) capacity. Magnolia will use four 2-million tpy trains (OGJ, Apr. 7, 2014, p. 108).
In April, Magnolia LNG let a technical services agreement to SK E&C USA Inc., a wholly owned subsidiary of South Korea’s SK Engineering & Construction Co. Ltd., covering ongoing engineering, procurement, and construction activities for the plant (OGJ Online, Apr. 15, 2014).
