Magnolia liquefied natural gas project, US

20th May 2016 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Magnolia liquefied natural gas project, US

Name and Location
Magnolia liquefied natural gas (LNG) project, Louisiana, US.

Client
Magnolia LNG, a wholly owned subsidiary of Liquefied Natural Gas Limited (LNGL).

Stonepeak Partners is earning an estimated 50% stake in the project for contributing the full $660-million project equity requirement.

Project Description
The project involves the development of a midscale LNG facility of up to eight-million tons a year in the Port of Lake Charles, Louisiana, using LNGL’s optimised single mixed refrigerant technology.

The development will comprise four liquefaction trains, each capable of producing up to two-million tons a year of LNG.

Feed gas for the project will be sourced from the highly liquid US gas market.

Gas will be delivered to the site through the Kinder Morgan Louisiana pipeline that traverses the 44 ha site.

Value
The indicative capital estimate for the project is $3.5-billion.

Duration
First LNG exports are planned for the second half of 2018.

Latest Developments
Magnolia LNG has received regulatory approval to start the production and export of natural gas from its operations in Louisiana.

The Federal Energy Regulatory Commission has authorised Magnolia to build and operate its facilities, as well as export domestically produced natural gas.

In addition to this approval, the Louisiana Department of Environmental Quality has approved the air permit for the LNG project.

Magnolia LNG MD and CEO Greg Vesey has said that the company is pleased to have received regulatory approval for the project, adding that both are important milestones as the company progresses the Magnolia LNG project towards a final investment decision.

Key Contracts and Suppliers
KBR-SK joint venture (overseeing engi-neering, procurement and construction contractor) and CH•IV (engineering, procurement and construction contractor).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Magnolia LNG, tel +1 337 656-9200 or email info@MagnoliaLNG.com.
LNGL, tel + 61 8 9366 3700, fax + 61 8 9366 3799 or email LNG@LNGlimited.com.au.
KBR director, communications Richard Goins, tel + 1 713 751 9471 or email mediarelations@kbr.com.