Leadership Urges FERC Action

Congressional leadership from Louisiana recently wrote to the Federal Energy Regulatory Commission (FERC) urging the agency to make a decision before the end of the year on Magnolia LNG’s application to build an LNG export facility in Louisiana.

In March, U.S. Sens. Bill Cassidy and David Vitter and U.S. Rep. Charles Boustany sent separate letters to FERC asking that the agency issue any remaining data requests and the notice of the schedule of environmental review for the project as soon as possible, and to issue a final decision on the application by the end of November.

The Congressmen also urged FERC to approve the $3.5 billion project, saying that, once Magnolia LNG receives approval from FERC, the company is well-positioned to commence construction and begin commercial operations in 2018.

In its April 2014 application, Magnolia LNG requested authorization to site, construct and operate liquefaction and export facilities at a proposed site near Lake Charles, La.

Magnolia LNG is proposing to develop an LNG facility capable of producing a nominal capacity of approximately 8 million tonnes per annum (mtpa) of LNG using its patented optimized single mixed refrigerant technology. The project would receive natural gas via a tie-in to an existing interstate pipeline owned and operated by Kinder Morgan Louisiana Pipeline that passes beneath the project site. Natural gas would be treated, liquefied, and stored on-site in two tanks with a capacity of approximately 160,000 cubic meters.

At full plant capacity, the project would consist of four LNG trains each with a nominal capacity of 2.0 mtpa. The LNG would be loaded onto LNG carriers for export overseas or LNG carriers and barges for domestic marine distribution to other U.S. states and territories. In addition LNG trucks would be used for road distribution to LNG refueling stations in Louisiana and the surrounding states.

According to the application, approximately 1.4 billion standard cubic feet per day of natural gas would be contracted for transportation to the project site via the interstate pipeline.

FERC, in a March status report on the project application, said that it currently is in the process of analyzing data for preparation of the draft environmental impact statement.

The draft EIS will describe the potential environmental effects of the project, mitigation measures proposed for each project and alternatives considered, and it will include an engineering design review of the proposed facilities. In addition, the draft EIS will present FERC’s recommendations for additional mitigation and conservation measures to avoid or further reduce effects on the environment.

After completing the analysis for the environmental impact statement, FERC will issue a notice of schedule with the target date for issuing the final EIS and disclosure of the 90-day decision deadline. –JD