(MENAFN- ProactiveInvestors)
(; OTC ADR:LNGLY) continues to progress the Federal Environmental Regulatory Commission (FERC) process for its Magnolia Liquefied Natural Gas project in Louisiana.
Both MLNG and Kinder Morgan Louisiana Pipeline have submitted their respective responses to separate environmental information requests from FERC.
These information requests are consistent with the normal process for applications filed under Sections 3 and 7 of the Natural Gas Act for LNG terminals and interstate pipelines in the U.S.
This will allow FERC to clarify certain aspects of the filings to assist them to issue a combined Draft
Environmental Impact Statement for the projects.
Magnolia LNG
Magnolia LNG located along the Calcasieu River near Lake Charles is planned as a 8 million tonne per annum (Mtpa) liquefied natural gas export project comprising of four liquefaction trains each capable of producing up to 2Mtpa of LNG (1.7Mtpa firm).
This will use LNG Limited’s OSMR® LNG process technology with the company adopting a tolling business model whereby Magnolia LNG will provide liquefaction storage and ship loading facilities to LNG buyers who pay a monthly fixed capacity fee plus all LNG plant operating and maintenance costs.
The LNG buyers are also responsible for the supply and transportation of gas to the project site.
LNG Limited has tolling agreements covering 7Mtpa of the project’s planned 8Mtpa capacity and is currently focused on converting the first 4Mtpa to binding status in the first half of 2014.
The U.S. Federal Energy Regulatory Commission has formally accepted its filling application for Magnolia LNG with all approvals expected during 2015 in time for financial close in the middle of the same year.
A final investment decision will be made in late 2014.
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