Magnolia gets permit from regulator to expand

Tuesday, 08 October 2019
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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.

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