Magnolia LNG Managing Director and Joint Chief Executive Director Maurice Brand. (Rick Hickman / American Press)
Last Modified: Thursday, January 17, 2013 8:54 PM
On the heels of Houston-based G2X Energy Inc.’s $1.3 billion announcement Tuesday, Australia-based Magnolia LNG has announced it will invest $2.2 billion on land leased by the Port of Lake Charles, officials said Thursday.
The midscale LNG project will reportedly create 45 permanent jobs with an average salary of $75,000 a year. The state Economic Development Department estimated the project will result in 175 indirect jobs. Also, the LNG project will require an estimated 1,000 construction jobs.
The liquefied natural gas facility will be on 90 acres at the port’s Industrial Canal, which is off the Calcasieu Ship Channel.
Officials with the company were in Lake Charles on Thursday and made the announcement at the port’s regular board meeting.
Magnolia LNG will produce 4 million metric tons of liquefied natural gas per year, and construction will begin in 2015, pending the company’s acquiring permits and finalizing financing.
“With the presence of natural gas, strategically laid pipelines, and busy waterways, Louisiana is once again proving its strength through natural resources and world-class infrastructure,” Gov. Bobby Jindal said in a news release.
“Our state is well-positioned to provide major supplies of natural gas to both domestic and international markets. We welcome Magnolia LNG, and we are confident that when the company completes its feasibility stage, this project will bring incredible economic benefits to the region.”
The project will be positioned for direct access to various existing gas pipelines. Magnolia LNG said it will produce liquefied natural gas more efficiently with fewer emissions than other LNG operations by using a patented process.
Magnolia LNG will distribute to domestic markets and countries that have free-trade agreements with the United States. In addition, the company will look into a potential expansion to 8 million metric tons per year in the future.
“Southwest Louisiana’s attractive infrastructure and strong workforce made Lake Charles an ideal location for our planned facility,” Maurice Brand, Magnolia LNG managing director and joint chief executive director, said in a news release.
“We especially want to thank the Port of Lake Charles commission for their partnership in identifying such an ideal location for this project. Whilst the company remains focused on securing the appropriate contracts and agreements, we expect to commence construction of our first U.S. venture by 2015.”
The company will seek federal Department of Energy free-trade agreement approval in 2013. Magnolia LNG will submit a prefiling application to the Federal Energy Regulatory Commission in March before it completes the selection of project partners by June. The company wants to begin hiring in early 2015 with commercial operations to begin in 2018.
“The Port of Lake Charles has been able to provide a unique combination of location, infrastructure and transportation capabilities to help bring this project to the region,” Port Executive Director Bill Rase said in a news release. “Magnolia LNG will be a significant and welcome addition to Southwest Louisiana’s energy corridor. The port’s staff and board of commissioners look forward to doing business with the company.”
The state began talks with Magnolia LNG in late 2012. The company’s proposed 90-acre site will include a long-term lease with the Port of Lake Charles. As soon as Magnolia determines to proceed with construction, the state will negotiate an incentive package with the company for the LNG project.
Newly formed Magnolia LNG, which got its name from the Louisiana state flower, is owned by Liquefied Natural Gas Ltd.
Liquefied Natural Gas Ltd., based in Perth, Australia, will join the Lake Charles project with its other facility in Fisherman’s Landing, near the Port of Gladstone in Queensland, Australia. The Gladstone project, which is also a midscale production facility, is capable of producing 3.8 million metric tons of LNG each year.
Posted By: Bright Ekpo On: 1/20/2013
Title: Welcome to Lake Charles
The advent of another LNG facility in Lake Charles area is a welcome developement.
Posted By: Peter Davison On: 1/20/2013
Title: Like to know where they will get the money from
Liquified Natural Gas Ltd doesn't have a facility in Gladstone.It only has a proposed one and no final investment decision has been made on that as they are struggling to get a supply of gas.
The company has very little resources and.
It's only saving grace is that it is PetroChina is a major shareholder.
Otherwise this company is a toothless tiger.