The US Magnolia LNG export project in Louisiana, which recently agreed to supply cargoes to a new terminal in Vietnam planned for the Mekong Delta, has received authorization from the regulators to expand production from 8 million tonnes per annum to 8.8 MTPA.
The Federal Energy Regulatory Commission issued the draft supplemental environmental impact statement concluding that the modifications for the capacity increase, with the additional mitigation measures recommended, would continue to avoid or reduce impacts to less than significant levels.
“There would be no substantive change in construction noise or air emissions from that previously analyzed in the Commission’s EIS for the Magnolia LNG project and modeling demonstrates there would be no exceedances of the National Ambient Air Quality Standards,” said the FERC report.
The FERC set 18 November 2019 as the deadline for receipt of public comments on the capacity increase.
The supplemental final environmental impact statement is then expected to be issued by the FERC on or before 24 January 2020.
The Magnolia LNG project developer is the Australian-listed company LNG Ltd, which in September 2019 signed an agreement to supply the Bac Lieu Province import terminal.
LNG Ltd said it Mangolia LNG, would supply 2 MTPA to Vietnam from its revised 8.8 MTPA of output.
The Louisiana shipments would be on a free-on-board (FOB) basis for a 20-year term with options to extend the term.
The Vietnamese project includes the construction of the import terminal, a 3,200-megawatt combined-cycle power plant and delivery of power generation to Bac Lieu Province.
That venture is expected to commence operations in 2023 pending finalization of anticipated government approvals.
“We thank FERC for their expeditious diligence and review of Magnolia LNG’s production capacity amendment, and we are pleased with the findings,” said LNG Ltd Chief Executive Greg Vesey.
“The increased LNG production would be achieved by an increase in the capacity and pressures of the ammonia refrigerant cycle and the mixed refrigerant cycle,” said the FERC.
“The auxiliary boiler stream production would also be increased to provide more power to the ammonia compressor steam turbine driver. In addition to the liquefaction uprate changes, the gas pre-treatment process would change from a single heavy hydrocarbon removal column to separate de-ethanizer and debutanizer columns,” explained the report.
“An electrically driven overhead booster compressor is proposed as part of the heavy hydrocarbon removal changes,” it added.
“Furthermore, the flare stack would be relocated on the project site, and a separate marine flare added,” stated the regulator.
