LNG Limited has received notice from the US Department of Energy (DOE) that the agency has granted authorisation for the company’s wholly owned subsidiary, Magnolia LNG LLC, to expand its export capacity to 8.8 million tpy of LNG to countries that have free trade agreements (FTA) with the US.
This approval provides an 0.8 million tpy increase from the DOE’s initial FTA approval orders. The DOE’s initial approval was granted on 26 February 2013 allowing Magnolia to export up to 4 million tpy of LNG to FTA countries. A subsequent 5 March 2014 order granted approval for an additional 4 million tpy.
The DOE authorisation is valid for LNG sales over a term of up to 25 years commencing on the earlier of the date of first export or ten years from the date of the initial authorisation (26 February 2023).
Magnolia previously received approval from the DOE to export LNG to countries with which the US has not entered into a free trade agreement (non-FTA approval) on 30 November 2016.
Greg Vesey, LNGL Managing Director and CEO, advised,
“We are very pleased to have successfully received DOE’s approval to export more gas to FTA countries from Magnolia.
This approval, coupled with FERC’s awaited authorisation for the increase, gives us added flexibility for our customers and will provide additional value for our shareholders.
Our discussions with offtakers are at an advanced stage, and we know they will see this action by the DOE as a positive development for Magnolia.”
US authorities expand Magnolia LNG export capacity
Perth-based Liquefied Natural Gas Limited has received authorization from the US Department of Energy to expand its export capacity of LNG to countries that have free trade agreements with the United States.
LNGL said on Monday that the authorization was awarded to the company’s unit Magnolia LNG, providing an 0.8 mtpa increase from the DOE’s initial FTA approval orders.
The DOE’s initial approval was granted on February 26, 2013, allowing Magnolia LNG to export up to 4 mtpa of the chilled fuel to FTA countries. A subsequent March 5, 2014, order granted approval for an additional 4 mtpa.
LNGL added that the DOE authorization was valid for LNG sales over a term of up to 25 years beginning on the earlier of the date of first export or ten years from the date of the initial authorization (February 26, 2023).
Magnolia LNG previously received approval from the DOE to export LNG to non-FTA approved countries on November 30, 2016.
Greg Vesey, LNGL managing director and CEO, said,
“Our discussions with offtakers are at an advanced stage, and we know they will see this action by the DOE as a positive development for Magnolia.”
The Magnolia LNG project proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2.2 mtpa or greater.
Construction and operation include two 160,000-cbm full containment storage tanks, ship, barge, and truck loading facilities, and supporting infrastructure.
Magnolia LNG is fully permitted, having received its FERC order and both FTA and non-FTA approval from the DOE.
Final investment decision and initiation of construction is expected upon execution of sufficient offtake agreements to support financing.
