Magnolia LNG Project Moves Forward with Key Approval

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy (DOE) recently granted Liquefied Natural Gas Limited's (Perth, Australia) Magnolia Project in Lake Charles, Louisiana, authorization to export liquefied natural gas (LNG) to countries that do not share a free-trade agreement (FTA) with the U.S. Industrial Info is tracking $4.25 billion in active projects related to the Magnolia LNG project, as well as $6.05 billion in other projects involving Liquefied Natural Gas Limited.

The DOE's order permits Magnolia LNG to export up to 394.2 billion cubic feet per year of domestically produced LNG over a 20-year period. Tentative tolling agreements are in place with Meridian LNG Holdings Corporation (London, England), Gas Natural SDG S.A. (Barcelona, Spain) and Brightshore Overseas Limited (Geneva, Switzerland), each for 2 million metric tons per year. AES Latin American Development Limited (Sao Paulo, Brazil) is signed for 1 million metric tons per year.

Industrial Info has been closely following progress at the proposed Magnolia LNG Liquefaction Production and Export Terminal, including the $2.2 billion construction of trains 1 and 2, the $2 billion construction of trains 3 and 4, and the $50 million addition of a pretreatment unit. Each train is expected to produce 2 million metric tons per year of LNG from natural gas that will be supplied via Kinder Morgan Energy Partners LP's (NYSE:KMP) (Houston, Texas) $12 million Calcasieu Parish-to-Acadia Parish Pipeline, which is part of Kinder Morgan's own Lake Charles Expansion Project. KBR Incorporated (NYSE:KBR) (Houston) and SK Engineering & Construction America (Seoul, South Korea) are serving as engineering, procurement and construction (EPC) contractors.

For more details, such as contractor and management contact information and specifications for the major components of each train and the pipeline, see Industrial Info's project reports on trains 1 and 2, trains 3 and 4, the pretreatment unit and the pipeline.

"Our Magnolia project team is very pleased to have successfully received this final piece of the regulatory framework, enabling our Magnolia LNG project to export U.S.-produced natural gas to the global energy market," said Greg Vesey, the managing director and chief executive officer (CEO) of Liquefied Natural Gas Limited, in a press release. "Going forward, we are well under way in progressing on the final off-take milestones to enable us to move this leading energy-efficient, innovative and low-cost project into the construction and operations phases."

In addition to the Magnolia LNG project, Industrial Info is tracking progress at Liquefied Natural Gas Limited's Bear Head LNG Production and Export Terminal in Port Hawkesbury, Nova Scotia, which includes the $4 billion construction of trains 1 and 2, the $2 billion construction of Train 3, and the $50 million addition of a pretreatment unit. Each train currently is expected to produce 4 million metric tons per year of LNG with a feedstock of 600 million cubic feet per day of natural gas, some of which will be sourced from the Marcellus Shale.

Earlier this year, Canada's National Energy Board (NEB) granted the Bear Head project authorization to import natural gas from the U.S. and to export up to 8 million tons per annum of LNG, which can be expanded to as much as 12 million tons per annum in the future. The DOE also has approved exports to FTA and non-FTA countries. For more information, see Industrial Info's project reports on trains 1 and 2, Trains 3, and the pretreatment unit.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.