Liquefied Natural Gas Ltd. (LNGL) subsidiary Magnolia LNG LLC has received FERC authorization to site, construct, and operate its proposed liquefied natural gas (LNG) export terminal in Lake Charles, LA.

The Federal Energy Regulatory Commission also authorized Kinder Morgan Louisiana Pipeline LLC (KMLP) to install compression and other facilities on the KMLP Pipeline to allow the transport of feed gas to the terminal [CP14-511, -347]. The project has also recently received an air permit from the Louisiana Department of Environmental Quality.

LNGL CEO Greg Vesey said a final investment decision on the project has yet to be made. “We look forward to the U.S. Department of Energy processing Magnolia LNG’s pending application to export LNG to countries that do not have a free trade agreement with the United States,” he said.

Magnolia LNG proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2 million tonnes per annum (mtpa) or greater using the company’s patented LNG process technology. Construction and operation is to include two 160,000 cubic meter full containment storage tanks, ship, barge and truck loading facilities, and supporting infrastructure.

During the FERC review of the project, the U.S. Environmental Protection Agency (EPA) asked FERC to consider the life-cycle greenhouse gas (GHG) emissions of the projects as the Commission did when it evaluated the Jordan Cove LNG project in Oregon, for which it recently denied a permit (see Daily GPI, April 11).

“The state of Louisiana has not conducted a life-cycle GHG analysis to supplement the Commission’s environmental review as the state of Oregon did in Jordan Cove,” FERC said in its order. “Because we do not have information regarding the destination of the LNG, which would allow us to estimate emissions from transportation of the LNG, we cannot provide the same analysis we included in the Jordan draft EIS [environmental impact statement]. Moreover, as explained in the final EIS for Jordan Cove, any life-cycle analysis of the emissions from LNG vessel transits to possible markets or the emissions resulting from the end use combustion of natural gas are too speculative to permit any meaningful consideration.”

Last year Magnolia received a favorable final EIS from Commission staff(see Daily GPI, Nov. 13, 2015). Magnolia made its application at the Commission in April 2014 and a draft environmental impact statement was issued in July (see Daily GPI, July 17, 2015). In June 2014 KMLP applied to expand its pipeline to allow delivery of natural gas to the project (see Daily GPI, Jan. 29, 2014). Last July it was announced that Meridian LNG Holdings Corp. had signed up for 2 million tonnes per annum (mtpa) of tolling capacity at the Magnolia terminal (see Daily GPI, July 23, 2015).

“Our primary focus remains to complete marketing of Magnolia LNG’s offtake capacity, finalize financing arrangements, and progress towards construction,” Vesey said.

Australia-based LNGL is also developing the Bear Head LNG terminal in Nova Scotia and associated Bear Paw Pipeline (see Daily GPI, March 29).