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Magnolia LNG Seeking Additional Export OK

Magnolia LNG LLC has filed with the U.S. Department of Energy (DOE) for additional export approvals for its proposed liquefied natural gas (LNG) export project in Lake Charles, LA.

The unit of Australia-based Liquefied Natural Gas Ltd. is seeking authorization to export up to 8 million tonnes per annum (mtpa) of LNG from the terminal to countries that do not have a free trade agreement (FTA) with the United States, and export an additional 4 mtpa to countries that do or will have a U.S. FTA.

"Discussions being held with potential new tolling parties have increased LNG demand from Magnolia LNG to over 8 mtpa. The increased level of DOE approvals being sought will allow Magnolia LNG to progress tolling agreements for the additional two LNG trains, each of 2 mtpa," said Magnolia LNG President Maurice Brand. "These applications do not affect the timing to financial close of the Magnolia LNG Phase 1 development of 4 mtpa, which is on schedule for the first half of 2015.

"Should these additional approvals be authorized, it will provide Magnolia LNG with increased flexibility to supply LNG to a greater number of countries. The overall development plan remains at 8 mtpa, and the project development approvals being sought with the U.S. Federal Energy Regulatory Commission are consistent with that volume of exports."

DOE previously granted Magnolia LNG authorization to export up to 4 mtpa of LNG to FTA countries in February (see Daily GPI, March 4). In July Magnolia said it had struck a preliminary agreement for Stonepeak Infrastructure Partners LP to provide project financing in exchange for a stake in the terminal (see Daily GPI, July 30).

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