Liquefied Natural Gas Limited (LNGL) announced that the US Federal Energy Regulatory Commission (FERC) has issued the supplemental final environmental impact statement (FEIS) for the production capacity amendment to the Australian company-proposed Magnolia LNG project in Lake Charles, Louisiana.
“Magnolia LNG’s production capacity amendment, filed with FERC on 19 November 2018, would increase the total authorized production capacity of Magnolia” from the currently authorized 8 MMT/Y to 8.8 MMT/Y.
“According to the Notice of Schedule for Environmental Review issued by FERC on 26 June 2019, the Federal Authorization Decision Deadline for this application is April 23, 2020.”
The FERC has concluded that Magnolia LNG’s design of the modified facilities, with the recommended mitigation measures, would include acceptable layers of protection or safeguards that would reduce the risk of a potentially hazardous scenario from developing into an event that could impact the offsite public.
The issuance of the supplemental FEIS is a major milestone for the proposed Magnolia LNG project capacity upgrade, incorporating substantive comments from FERC, cooperating federal agencies, and other interested parties. “We look forward to receiving the federal authorization on schedule in April,” the LNGL’s CEO, Greg Vesey said.

Backgrounds:

On 3 Oct. 2019, the US Federal Energy Regulatory Commission (FERC) released a draft environmental statement (EIS) on the LNGL’s request to boost capacity at its proposed Magnolia LNG by 0.8 MMT/Y. The company already has FERC approval to produce 8 MMT/Y of LNG at the facility and wants to boost that total by 10%.
FERC gave the company a list of 17 items that must be dealt with before the final design for the plant can be submitted.
On 29 Oct. 2018, LNG Limited announced that it has pushed back its FID for its proposed Magnolia LNG export project from the end of 2018 to the first part of 2019 due to trade tensions with China. “While trade issues with the Chinese market impact our discussions, our negotiations with customers in other parts of the world remain strong.”
“There are varying opinions on how and when the trade issues with China will be resolved. Considering that, our communications with potential Chinese offtakers remain robust with the intent to complete agreements if trade tensions abate before Magnolia is fully sold out.”
Earlier, Edison, an investment research and advisory company, had noted that the ongoing trade dispute between the US and China could potentially delay the start of Magnolia LNG project.

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