Louisiana LNG Export Project Clears DOE Hurdle

The U.S. Department of Energy (DOE) on Thursday granted authorization for a proposed liquefied natural gas (LNG) terminal in Lake Charles, La., to export LNG to countries with which the United States has not entered into a free trade agreement (non-FTA approval).

"Our Magnolia project team is very pleased to have successfully received this final piece of the regulatory framework enabling our Magnolia LNG project to export U.S.-produced natural gas to the global energy market," stated Greg Vesey, managing director and CEO of project developer Liquefied Natural Gas Limited (LNGL), in a press release announcing DOE's non-FTA approval.

LNGL's Magnolia LNG, LLC is developing a four-train LNG export terminal at the Port of Lake Charles that will be capable of producing at least 8 million tonnes per annum of LNG using the company's proprietary OSMR process technology. KBR is leading a joint-venture team with SKE&C that is conducting engineering, procurement and construction efforts for the project on a fixed-price, turnkey basis, according to LNGL. Natural gas for the liquefaction terminal will arrive via the Kinder Morgan Louisiana Pipeline under a 20-year deal with Magnolia LNG.

"We recognize and appreciate the hard work and timely efforts put in by the DOE and other cooperating agencies in reaching this decision," continued Vesey. "Going forward, we are well underway in progressing on the final offtake milestones to enable us to move this leading energy efficient, innovative and low cost project into the construction and operations phases."

LNGL has also proposed export projects in Canada and Australia.



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