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Magnolia LNG receives FERC Order
Magnolia LNG, LLC is pleased to advise that it has received the Federal Energy Regulatory Commission (FERC) authorization (FERC Order) to site, construct, and operate facilities to liquefy and export domestically produced natural gas from its liquefied natural gas (LNG)terminal in the Lake Charles District, State of Louisiana, USA.

In addition, the Louisiana Department of Environmental Quality (LDEQ) approved the air permit for the Magnolia LNG.

In a related matter, FERC also authorized the Kinder Morgan Louisiana Pipeline LLC (KMLP Pipeline) to install compression and other related facilities on the KMLP Pipeline, facilitating the transportation of full feed gas volumes to the Magnolia LNG project.

Liquefied Natural Gas Limited (LNGL) Managing Director and Chief Executive Officer, Greg Vesey said, “We are pleased to receive the FERC Order and the air permit from LDEQ. Both of these items are important milestones as we progress the Magnolia LNG project towards a final investment decision. We look forward to the US Department of Energy (DOE) processing Magnolia LNG’s pending application to export LNG to countries that do not have a free trade agreement (FTA)with the United States.”

Magnolia LNG proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2 mtpa or greater using the Company’s OSMR® patented LNG process technology. Construction and operation shall include two 160,000m3 full containment storage tanks, ship, barge and truck loading facilities, and supporting infrastructure.

As previously announced, construction of the facility will be by the KBR-SKE&C joint venture (KSJV) under a lump sum turnkey EPC contract.

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

About the Magnolia LNG Project

The Magnolia LNG project is 100% owned by Magnolia LNG LLC, which is a wholly owned subsidiary company of Liquefied Natural Gas Limited. The project comprises the proposed development of an 8-mtpa LNG project on a 115-acre site, located on an established LNG shipping channel in the Lake Charles District, State of Louisiana, United States of America. The project is based on the development of four LNG production trains of 2 mtpa each using the Company’s wholly owned OSMR® LNG process technology.

Magnolia LNG’s business model provides liquefaction services to LNG buyers who pay a monthly fixed capacity fee, plus all LNG plant operating and maintenance costs. LNG buyers contract for liquefaction services under two contract models – a Liquefaction Tolling Agreement, whereby the LNG export terminal is only responsible for processing natural gas into LNG, and an LNG Sales and Purchase Agreement under which the customer buys LNG on a free on board basis (FOB).

About Liquefied Natural Gas Limited

Liquefied Natural Gas Limited is an Australian listed company (Code: LNG and OTC ADR: LNGLY) focused on development of mid-scale LNG plants. LNGL’s business strategy aims to deliver lower capital and operating costs, faster construction timelines and improved efficiency, relative to larger traditional LNG projects. LNGL’s portfolio includes Magnolia LNG LLC, an 8 mtpa project in Lake Charles, Louisiana; Bear Head LNG Corporation, an up to 12 mtpa project on the Strait of Canso in Point Tupper, Nova Scotia; Gladstone LNG Pty Ltd, which is progressing the 3.8 mtpa Fisherman’s Landing LNG project at the Port of Gladstone in Queensland, Australia; and LNG Technology Pty Ltd, which owns and develops the OSMR® LNG liquefaction process.

Origine : Communiqué Liquefied Natural Gas Limited

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