The DOE granted Australia’s Liquefied Natural Gas Limited (ASX:LNG) (OTCMKTS:LNGLY) authorization for Magnolia LNG LLC to expand its export capacity to 8.8 million tonnes per annum (mtpa) of LNG to countries that have free trade agreements (FTA) with the United States.

This approval provides an 0.8 mtpa increase from the DOE’s initial FTA approval orders above the DOE’s initial approval in 2013 allowing Magnolia to export up to 4 mtpa of LNG to FTA countries and a subsequent 5 March 2014 increase of an additional 4 mtpa.

Magnolia LNG proposed plant U.S. - Oil & Gas 360

The DOE authorization is valid for LNG sales over a term of up to 25 years commencing on the earlier of the date of first export or ten years from the date of the initial authorization (26 February 2023).

Magnolia previously received approval from the DOE to export LNG to countries with which the United States has not entered into a free trade agreement (non-FTA approval) on 30 November 2016.

Greg Vesey, LNGL Managing Director and CEO, advised, “We are very pleased to have successfully received DOE’s approval to export more gas to FTA countries from Magnolia. This approval, coupled with FERC’s awaited authorization for the increase, gives us added flexibility for our customers and will provide additional value for our shareholders. We thank the DOE staff for their prompt response. Our discussions with offtakers are at an advanced stage, and we know they will see this action by the DOE as a positive development for Magnolia.”

Magnolia LNG’s export business plan calls for construct and operate up to four liquefaction production trains, each with a capacity of 2.2 mtpa or greater using the Company’s patented OSMR(R) LNG process technology. Construction and operation includes two 160,000 m3 full containment storage tanks, ship, barge, and truck loading facilities, and supporting infrastructure.

Magnolia said a FID (final investment decision) and initiation of construction is expected upon execution of sufficient offtake agreements to support financing.

Liquefied Natural Gas Limited (ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:

– Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;

– Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian based subsidiary, which is developing an 8 mtpa or greater LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;

– Bear Paw Pipeline Corporation Inc. (Bear Paw), proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and

– LNG Technology Pty Ltd, a subsidiary which owns and develops the Company’s OSMR(R) LNG liquefaction process, a mid-scale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.


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