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Liquefied Natural Gas Ltd Closer To U.S. Regulatory Approvals For Magnolia

Liquefied Natural Gas Limited (ASX:LNG; OTC ADR:LNGLY) has submitted responses to the U.S. Federal Environmental Regulatory Commission's second Information Request covering seismic and geotechnical information for its Magnolia LNG project.

The company expects to shortly receive an information request on both the technical and safety Resource Reports submitted.

MLNG and Kinder Morgan Louisiana had on 23 October 2014 received follow‐up data requests from FERC covering additional questions on the environmental aspects of the projects.

Responses to this Information Request from FERC and any other clarifications required, need to be addressed in order for FERC to issue a Notice of Schedule for Environmental Review followed by the Draft Environmental Impact Statement.

Magnolia LNG is moving substantially closer to the issuance of both documents and is targeting their release in this calendar year.

Magnolia LNG

Magnolia LNG, located along the Calcasieu River near Lake Charles, is planned as a 8 million tonne per annum (Mtpa) liquefied natural gas export project comprising of four liquefaction trains, each capable of producing up to 2Mtpa of LNG (1.7Mtpa firm).

This will use LNG Limited's OSMR® LNG process technology with the company adopting a tolling business model whereby Magnolia LNG will provide liquefaction, storage and ship loading facilities to LNG buyers who pay a monthly fixed capacity fee, plus all LNG plant operating and maintenance costs.

The LNG buyers are also responsible for the supply and transportation of gas to the project site.

LNG Limited has tolling agreements covering 7Mtpa of the project's planned 8Mtpa capacity and is currently focused on converting the first 4Mtpa to binding status in the first half of 2014.

The U.S. Federal Energy Regulatory Commission has formally accepted its filling application for Magnolia LNG with all approvals expected during 2015 in time for financial close in the middle of the same year.

A final investment decision will be made in late 2014.

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