Liquefied Natural Gas Limited of Australia said that on the 18 December, the company’s wholly owned subsidiary, Magnolia LNG, filed an application with the US Department of Energy, Office of Fossil Energy (US DOE/FE) to export up to 4 million tonnes per annum (mtpa) of LNG to countries that have Free Trade Agreements (FTA) with the United States of America.
The following provides an outline of the current status of Magnolia LNG:
1. US DOE/FE APPLICATION:
The report is now open for public comment, following which the US Government is likely to establish policy guidelines for the export of LNG to Non‐FTA Countries.
2. SITE ACCESS / OPTION TO LEASE
3. TOLLING AGREEMENT
4. FEDERAL ENERGY REGULATORY COMMISSION (FERC)
5. CAPITAL COST AND FUNDING
The Company’s Managing Director and Joint Chief Executive Director, Maurice Brand , said that “Magnolia LNG is an excellent opportunity to capitalise on the substantial development work and investment that has been made in the Company’s Gladstone LNG Project. Essentially we are replicating a significant component of the Gladstone LNG Project’s technical and engineering development work in the US market, a market that is expected to dominate new global LNG supply for the next decade.”
“Whilst the Company remains very focussed on concluding the EPC contract; Tolling Agreement and financing for the Gladstone LNG Project, to enable a final investment decision and recommencement of construction in 2013, Magnolia LNG provides the prospect for the Company to proceed to construction of a second LNG project in 2015/16.” said Mr Brand.
[mappress] LNG World News Staff, December 19, 2012; Image: LNG Ltd