Magnolia LNG Project advances

Friday, December 27, 2013

Magnolia LNG, a wholly-owned subsidiary of Australia’s Liquefied Natural Gas Limited (LNGL) recently announced two advancements in the development of its 8mtpa-capacity, mid-scale liquefied natural gas (LNG) facility.

Magnolia announced Dec. 25 that it was in the final stages of selecting its preferred engineering, procurement and construction contractor. The company is also nearing a definitive precedent agreement with Kinder Morgan Louisiana Pipeline for the transportation of gas to the project.

The Magnolia LNG Project’s planned 108-acre facility will be located on an existing LNG shipping channel on the Industrial Canal South Shore in the Port of Lake Charles, Louisiana, USA. It will operate courtesy of a long-term lease with the Lake Charles Harbor & Terminal District.

Preliminary plans for the project state that it will receive gas through an existing pipeline, where it will be treated, liquefied and stored. LNG will then be exported or delivered domestically. The project will consist of four 2mtpa-capacity trains.

LNGL’s Optimized Single Mixed Refrigerant (OSMR) liquefaction process will be utilized at the project, which the company said will contribute to higher efficiency, lowered operating and capitals costs and 50% less emissions.

Magnolia’s announcement said that responsibility for the supply and transportation of gas will be assumed by the parties upon the execution of definitive tolling agreements. LNGL’s November update stated that it had already issued a draft definitive Tolling Agreement to Brightshore Overseas Ltd., an affiliate of the Gunvor Group, and will issue more agreements to other companies, including Gas Natural SDG SA.

Phase I of the project carries an etimated cost oc US$2 billion and will comprise of two LNG trains, each with 2mtpa capacity.

Construction on the project is slated for a 2015 start with production to commence in 2018. LNGL said in its November project update that the pre-filing process was all on schedule. In October, Magnolia LNG filed 2013 to export up to 8mtpa of LNG to countries without Free Trade Agreement (FTA) in place with the US, and an additional 4mtpa to FTA countries.

Image of the planned Magnolia LNG project courtesy LNGL.

Categories: Asia LNG

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