FERC staff has issued a final supplemental environmental impact statement (SEIS) for a proposal by Magnolia LNG LLC to increase to 8.8 million metric tons/year (mmty) the liquefied natural gas (LNG) production capacity of the previously authorized Magnolia LNG Project in Calcasieu Parish, LA.
The Magnolia LNG Production Capacity Amendment would increase the Magnolia LNG Project’s capacity from its previously approved 8 mmty [CP19-19, CP14-347]. A draft SEIS for the project was issued four months ago.
The increased production capacity would be achieved through the optimization of Magnolia LNG’s final design, including additional and modified process equipment, according to the Federal Energy Regulatory Commission. All new or reconfigured facilities would be within the footprint of the authorized Magnolia LNG terminal site.
The final SEIS comes four months after the project developer reached a proposed agreement to sell a quarter of its capacity to Singapore’s Delta Offshore Energy Pte Ltd. If finalized and a positive final investment decision is made, about 2 mmty would be supplied to Delta on a free-on-board basis for at least 20 years to fuel a power plant in Vietnam. Deliveries potentially could begin in 2024, with the liquefaction price set at 113% of Henry Hub, plus fees.
The Magnolia LNG export terminal, which would be sited along the Calcasieu Ship Channel in Lake Charles, LA, 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 mmty of LNG for a total capacity of 8 mmty.
Natural gas supply would be delivered to the site via the Kinder Morgan Louisiana Pipeline (KMLP). Magnolia LNG has entered into a 20-year binding pipeline capacity agreement with KMLP to deliver gas to the site for the full 8 mmty of capacity.
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