USA: DOE Authorizes Magnolia LNG to Export 8 Mtpa to FTA Countries

USA: DOE Authorizes Magnolia LNG to Export 8 Mtpa to FTA Countries

Liquefied Natural Gas Limited said that the United States Department of Energy (DOE), has granted authorisation for Magnolia LNG, a unit of LNG Limited, to export an additional 4 million tonnes per annum (mtpa) of LNG, from its proposed LNG project site at the Port of Lake Charles, Louisiana.

This follows the DOE’s initial approval granted on 26 February 2013 to export up to 4 mtpa of LNG to Free Trade Agreement (FTA) countries with the United States.

The DOE authorisation is valid for first LNG sales to commence within 10 years and then for a period of 25 years from first LNG sales. LNG sales are permitted to all existing, and any future, countries that have, or enter into, a Free Trade Agreement with the Government of the United States.

Managing Director of LNG Limited Maurice Brand said: “Negotiations are progressing smoothly with the three proposed existing tollers for long-term tolling agreements, Brightshore Overseas Limited (a subsidiary of the Gunvor Group), Gas Natural SDG, S.A (a subsidiary of the Gas Natural Fenosa Group), and LNG Holdings Corp., (owned by a fund managed by West Face Capital Inc.). As announced yesterday, the Company now has signed a fourth non-binding tolling term sheet with the AES Group and will be negotiating a long-term tolling agreement with that counterparty as well.

Magnolia LNG is currently focused on LNG supply to FTA countries, so the DOE approval today for up to 8 mtpa is timely,” said Brand.

Press Release, March 7, 2014; Image: Magnolia LNG