Magnolia LNG LLC has been granted a second authorization to export liquefied domestic natural gas to free trade agreement (FTA) countries from its planned terminal near Lake Charles, LA, the U.S. Department of Energy (DOE) said in a Wednesday order.

DOE authorized the company, a unit of Australia’s Liquefied Natural Gas Ltd., to export the liquefied equivalent of 197.1 Bcf of natural gas per year for up to 25 years on its own behalf or as an agent for others that hold title to the liquefied natural gas (LNG).

The order is in addition to an FTA export authorization granted to Magnolia in February 2013 for the same volume. The combined FTA authorizations total 394.2 Bcf per year. Magnolia is also seeking to export that same amount to non-FTA countries in an application pending before DOE; however, this volume is not to be additive to the FTA authorization volume (see Daily GPI, Oct. 16, 2013). In other words, the FTA authorizations and any non-FTA authorization granted would not exceed a total export volume of 394.2 Bcf per year for the project.

The Magnolia terminal is expected to include four trains, two LNG storage tanks each with a capacity of 160,000 cubic meters, and vessel loading facilities. Each of the trains is to be capable of producing up to 2 million tonnes per annum (mtpa) for a total capacity of 8 mtpa.

Magnolia just announced that it has struck a tolling agreement for the project with AES Latin American Development Ltd., a unit of AES Corp. Group. The agreement is for LNG capacity rights of 800,000-1 million tonnes per annum.

“The agreement with AES is structured and contains similar terms to the tolling agreement term sheets already signed with Brightshore Overseas Ltd. (subsidiary of the Guvnor Group), Gas Natural SDG SA (subsidiary of the Gas Natural Fenosa Group), and LNG Holdings Corp. (owned by a fund managed by West Face Capital Inc),” Magnolia said.

Earlier this year Magnolia struck a precedent agreement for pipeline capacity with Kinder Morgan Louisiana Pipeline LLC in support of the terminal project (see Daily GPI, Jan. 29).