Lake Charles LNG Project Gets New Ownership

With the acquisition of Magnolia LNG, along with its Texas LNG Brownsville project, Glenfarne Group expands its export capacity to 12 mpta.

LNG Limited

Glenfarne Group completed its acquisition of the Magnolia liquefied natural gas (LNG) project in Lake Charles, Louisiana, through its newly formed subsidiary Magnolia LNG Holdings. The 8 mtpa project, which includes 4 LNG projection trains of 2 mtpa each, was previously owned by LNG Limited, which is currently completing a corporate restructuring.

The transaction includes the acquisition of Magnolia LNG’s patented OSMR liquefaction technology which is based on a single-mixed refrigerant system with the addition of conventional combined heat and power and ammonia refrigeration technology to significantly enhance a plant’s LNG output and overall process efficiency.

The Magnolia LNG export project is permitted by the Federal Energy Regulatory Commission (FERC) to receive natural gas through the existing Kinder Morgan Louisiana Pipeline. Magnolia LNG also entered into a precedent agreement for a 20-year binding pipeline capacity agreement with Kinder Morgan Louisiana Pipeline to deliver gas to the site.

A joint venture (JV) between KBR and SKE&C is undertaking engineering, procurement, and construction contracting efforts for Magnolia LNG, with KBR leading the JV team.  

With the acquisition, Glenfarne said it looks to bring the project to final investment decision but did not give a timeline.

The acquisition of Magnolia LNG increases Glenfarne’s LNG export capacity to approximately 12 mtpa, of which 4 mtpa comes from Texas LNG Brownsville, owned and operated by Glenfarne subsidiary Alder Midstream.