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Magnolia LNG project update

Published by , Editor - Hydrocarbon Engineering
Tanks and Terminals,

On 15 April 2016, the US Federal Energy Regulatory Commission (FERC) granted Magnolia LNG, LLC (Magnolia), a wholly owned subsidiary of Liquefied Natural Gas Limited authority to site, construct, and operate new facilities (the Magnolia LNG project) at a proposed LNG terminal in Calcasieu Parish, Louisiana, for the liquefaction and export of natural gas. Subsequently, on 16 May 2016, Sierra Club filed a request for rehearing.

LNGL and Magnolia are pleased to report that on 23 November 2016, FERC issued its Order on Rehearing fully reaffirming its 15 April 2016 authorisation of the proposed Magnolia LNG export facility. In doing so, FERC entirely rejected the Sierra Club's arguments, basing its rejection largely on recent decisions from US federal appeals courts that have found FERC's approach is proper and consistent with the US Supreme Court precedent. FERC's issuance of the Order on Rehearing means that the US Department of Energy (DOE) now will be able to continue processing Magnolia's pending application for LNG exports to countries that do not have free trade agreements with the United States (non-FTA).

LNGL's Managing Director & CEO Mr Gregory Vesey stated, "We are pleased with the FERC's decision on this matter and look forward to the US DOE processing Magnolia LNG's pending application to export LNG to non-FTA countries."

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