PERTH (miningweekly.com) – ASX-listed Liquefied Natural Gas (LNG) has received the final environmental-impact statement (EIS) for its Magnolia project in Louisiana, from the US Federal Energy Regulatory Commission (FERC).

The FERC also cleared the associated Kinder Morgan Lousiana Pipeline (KMLP) Lake Charles expansion project.

LNG on Monday said that, in completing the unified EIS for the two projects, the FERC conducted a comprehensive environmental, safety and security review analysing publicly available data, input from other federal and state agencies, comments from stakeholders, and information from both the Magnolia and KMLP projects regarding the construction and operation of the two projects.

The next step in the FERC process was for the agency’s commissioners to act on the respective applications.

Meanwhile, LNG had agreed to a binding lump sum turnkey engineering, procurement and construction (EPC) contract with KBR-SKE&C joint venture over the Magnolia LNG contract.

The EPC contract was worth some $4.35-billion and would see the construction of four LNG trains and associated facilities, including two containment storage tanks, LNG marine and shiploading facilities and supporting infrastructure.

The contract guaranteed production of 7.6-million tonnes a year, with installed capacity costs per tonne ranging from $495 to $544, based on a final design at the time of the final investment decision (FID).

Post-FID costs were expected to range between $585-million and $675-million and would include insurance, the commissioning of gas and other minor contracts.

For a period of up to 15 years following the start of commercial production for each train, the KBR-SKE&C joint venture could be eligible for yearly revenue-sharing payments ranging from $0 to $30-million across the four-train plant.

Yearly amounts to be paid to the EPC contractor would be based on actual LNG production achieved in a year, reflected on a per train average cost across the eight-million-tonne-a-year-or-greater liquefaction plant.