(MENAFN- ProactiveInvestors)
(; OTC ADR:LNGLY) continues to progress the Federal Environmental Regulatory Commission (FERC) process for its Magnolia Liquefied Natural Gas export project in Louisiana.
The company has submitted on the requested date its full and complete response to the FERC Engineering Data information request.
These information requests are consistent with the normal process for applications filed under Sections 3 and 7 of the Natural Gas Act for LNG terminals and interstate pipelines in the U.S.
The Engineering Data Information response represents a major step in the FERC Filing process and is usually one of the final information requests sought by FERC before the issue of a Notice of Schedule and draft Environmental Impact Statement.
Managing director Maurice Brand said the Magnolia LNG team and consultants had submitted a response to all 103 data requests from FERC.
“We continue to make solid progress to finalise the FERC Filing process and the targeted issue of a Notice of Schedule in early 2015” he added.
“The FERC process continues to run in parallel with the Company moving towards a bankable EPC contract and long term Tolling Agreements.
“Magnolia LNG is now well placed to achieve its primary goal to achieve Financial Close in mid‐2015 and first LNG in 2018.”
Magnolia LNG
Magnolia LNG located along the Calcasieu River near Lake Charles is planned as a 8 million tonne per annum (Mtpa) liquefied natural gas export project comprising of four liquefaction trains each capable of producing up to 2Mtpa of LNG (1.7Mtpa firm).
This will use LNG Limited’s OSMR® LNG process technology with the company adopting a tolling business model whereby Magnolia LNG will provide liquefaction storage and ship loading facilities to LNG buyers who pay a monthly fixed capacity fee plus all LNG plant operating and maintenance costs.
The LNG buyers are also responsible for the supply and transportation of gas to the project site.
LNG Limited has tolling agreements covering 7Mtpa of the project’s planned 8Mtpa capacity and is currently focused on converting the first 4Mtpa to binding status in the first half of 2014.
Earlier this month the company agreed on an Engineering Procurement and Construction contract for its Magnolia LNG (MLNG) export project in Louisiana with SK Engineering and Construction Group.
Capital costs for the initial contracted work for two of the four planned 2Mtpa liquefaction trains is estimated at US$1.986 billion.
Total capital cost for the 8 million tonne per annum project remains at US$3.5 billion or US$440 per tonne.
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