Magnolia LNG Receives Wide Support for Lake Charles Project, USA

Magnolia LNG recently received wide support for its planned Liquefied Natural Gas (LNG) Project at a Federal Energy Regulatory Commission (FERC) public scoping meeting recently held in Lake Charles. The Magnolia facility will be located on Port of Lake Charles property along the Industrial Canal.

In a letter filed with FERC, U.S. Senator Mary Landrieu expressed her support for the project. “This project is already strongly supported by the community and its leaders. Magnolia LNG has and will continue to provide a net benefit to this community. I am proud to add my support to this project and stand ready to assist in seeing the project completed.”

The public scoping meeting is in connection with the preparation of an environmental impact study (EIS) performed by FERC to determine whether the project is in the public convenience and necessity. The EIS will take into consideration the project’s impacts as it relates to geology, wetlands, water resources, cultural resources, air quality, noise, endangered species and public safety, amongst others.

“We’ve been overwhelmed by the sincere support already received from the local community, its leadership, as well as state and federal legislators,” said Ernie Megginson, vice president of project development for Magnolia LNG. 

Referring to Louisiana’s existing pipeline infrastructure and economic development incentives, U.S. Representative Charles Boustany said in a letter filed with FERC, “These valuable and significant advantages should be capitalized on now, and I respectfully request every proper consideration be provided to Magnolia LNG’s application.”

The Magnolia LNG Project has received support from the entire Southwest Louisiana state legislative delegation including State Senators Ronnie Johns and Dan Morrish, Speaker of the House Chuck Kleckley and State Representatives Mike Danahay, A.B. Franklin, Brett Geymann and John E. Guinn.

Other governmental and business agencies are piling on support for the project. These include the Port of Lake Charles, Calcasieu Parish Police Jury, City of Lake Charles, City of Sulphur, City of DeQuincy, Calcasieu Parish District Attorney, Southwest Louisiana Economic Development Alliance and Lake Charles Pilots Association.

“Magnolia anticipates an initial $2.2 billion capital investment and estimates that the project will generate approximately 1,000 construction jobs, 45 high‐paying permanent jobs and 175 additional indirect jobs,” said Mayor Randy Roach of the City of Lake Charles in a letter filed with FERC. “Based on these estimates it appears that this project will provide significant short‐ and long‐term economic benefits to Southwest Louisiana.”

Magnolia LNG is designed to be a mid‐scale LNG project, with four gas liquefaction units, each producing 2 million tons per annum at maximum capacity. Company officials anticipate receiving final federal and state permitting in 2014, commencement of construction in 2015, and initial start‐up of operations near the final quarter of 2017. Magnolia LNG has received approval from the U.S. Department of Energy to export product to Free‐Trade Agreement countries.