Liquefied Natural Gas Limited has advised that the U.S. Department of Energy has revised procedures that could result in faster approval of applications to export LNG to non-Free Trade Agreement (Non-FTA) countries.
The company had in October 2013 applied for approval to export 8 million tonnes of LNG per annum from its Magnolia LNG project at Port of Lake Charles, Louisiana, to non-FTA countries.
Securing Non-FTA approval will allow the company’s proposed LNG toller’s to export their LNG to all major global LNG
markets Managing Director Maurice Brand said “DOE reiterates that the procedural changes will enable it to focus on projects that are more likely to advance to commercial operation, referencing commencement and continued progress through and completion of the National Environmental Policy Act (NEPA) process as an indicator. Importantly, focusing on these real projects will aid DOE in assessing cumulative market and other impacts. By placing the most viable projects first based on objective factors like the completion of the robust NEPA review, DOE’s new procedures ensure that such projects are not disadvantaged by the creation of an artificially high cumulative non--FTA export volume from projects that have not made significant progress towards securing authorisation for the physical export facilities”.
“Magnolia LNG is well advanced in the NEPA process at FERC. Based on the current state of the regulatory review, we expect to receive the draft Environmental Impact Statement (DEIS) in 2014, and the Final Environmental Impact Statement (FEIS) likely will issue approximately 4 months after the DEIS. With today’s announced final revised DOE process, Magnolia LNG is confident that it will advance more quickly to its Non--FTA uthorisation because the trigger for commencement of the Non--FTA process now is based on completion of the FERC NEPA process, rather than the old queue,” said Mr Brand.