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US DOE Authorizes Magnolia Project for 8 MTPA Export to Free Trade Agreement Countries
Perth, Mar 7, 2014 AEST (ABN Newswire) - The Directors of Liquefied Natural Gas Limited (
ASX:LNG) are pleased to advise that the United States Department of Energy (DOE), has granted authorisation for Magnolia LNG, LLC (wholly owned by the Company), to export an additional 4 million tonnes per annum (mtpa) of LNG, from its proposed LNG project site at the Port of Lake Charles, Louisiana (Magnolia LNG Project).
This follows the DOE's initial approval granted on 26 February 2013 to export up to 4 mtpa of LNG to Free Trade Agreement (FTA) countries with the United States.
The DOE authorisation is valid for first LNG sales to commence within 10 years and then for a period of 25 years from first LNG sales. LNG sales are permitted to all existing, and any future, countries that have, or enter into, a Free Trade Agreement with the Government of the United States.
Managing Director Maurice Brand said "Negotiations are progressing smoothly with the three proposed existing tollers for long-term tolling agreements, Brightshore Overseas Limited (a subsidiary of the Gunvor Group), Gas Natural SDG, S.A (a subsidiary of the Gas Natural Fenosa Group), and LNG Holdings Corp., (owned by a fund managed by West Face Capital Inc.). As announced yesterday, the Company now has signed a fourth non-binding tolling term sheet with the AES Group and will be negotiating a long-term tolling agreement with that counterparty as well".
"Magnolia LNG is currently focused on LNG supply to FTA countries, so the DOE approval today for up to 8 mtpa is timely", said Mr. Brand.
About Liquefied Natural Gas Ltd
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 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is 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® LNG liquefaction process, a midscale 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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