Louisiana DEQ seeks comment on air permits for Magnolia LNG project

The Louisiana Department of Environmental Quality will conduct a Jan. 19 public hearing on the proposed Part 70 Air Operating Permit, proposed PSD Permit and the associated Environmental Assessment Statement (EAS) for the Magnolia LNG LLC project.

The facility site is located at the Industrial Canal South Shore Port of Lake Charles, Track 475, on Henry Pugh Boulevard, Lake Charles, Calcasieu Parish.

Magnolia LNG requested a prevention of significant deterioration (PSD) and a Part 70 air operating permit for the proposed Magnolia LNG Facility, which will have a nominal capacity of approximately 8.0 million metric tonnes per annum (mtpa) of liquefied natural gas (LNG). The natural gas will be treated, liquefied, and stored on-site in two full containment LNG storage tanks with a net pumpable capacity of approximately 160,000 cubic meters (m3) each. The LNG will be loaded onto LNG carriers, barges, and trucks.

The EAS submitted by the applicant addresses avoidance of potential and real environmental effects, balancing of social and economic benefits against environmental impact costs, and alternative sites, projects, and mitigative measures. 

Comments and requests for public hearings must be received by 4:30 pm CST, Monday, Jan. 25, 2016.

KBR Inc. (NYSE: KBR) on Nov. 16 announced the signing of a major engineering, procurement and construction (EPC) contract by Magnolia LNG (MLNG) for this facility. KBR will lead the KSJV joint venture with SK Engineering & Construction (South Korea) for execution of the project. The EPC contract covers the detailed engineering, procurement and construction of four LNG production trains each with design capacity of 2 million tonnes per annum (mtpa), two 160,000 m3 full containment LNG storage tanks, LNG marine and ship loading facilities, and supporting infrastructure.

KSJV engineering and procurement services will commence immediately and subject to final regulatory approval, construction mobilization on the project is expected to begin the first quarter of 2016. Work on detailed design and early construction planning will proceed immediately under a Limited Notice to Proceed (LNTP) with final release expected in 2016.

The Federal Energy Regulatory Commission on Nov. 13 issued a final environmental impact statement (EIS) for the Magnolia LNG Project proposed by Magnolia LNG and the Lake Charles Expansion Project proposed by Kinder Morgan Louisiana Pipeline LLC. The Lake Charles Expansion Project would include reconfiguration of Kinder Morgan’s existing pipeline system in order to accommodate Magnolia’s request for natural gas service. The projects would provide an LNG export capacity of 1.08 billion cubic feet per day of natural gas.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.