LAKE CHARLES, LA (KPLC) - On Wednesday, Magnolia LNG announced it reached an agreement with Kinder Morgan Louisiana Pipeline for gas transportation service rights.
The precedent agreement basically secures rights for the Magnolia LNG project here in Lake Charles.
Their president attended Wednesday night's board meeting and said it's been about a year since he last visited.
Magnolia LNG President, Maurice Brand, made a trip to Lake Charles to give an update on their project before the Lake Charles Harbor and Terminal District Board of Commissioners.
"We're building a green energy project of 8 million tons capacity, to export to parts of the world. The capital investment is $3.5 billion," Brand said.
That figure is actually up $1.3 billion because of the level of interest.
"And that really is the cost of two extra LNG trains," Brand said.
And as far as technology goes, Brand describes it as the most efficient in the world.
"Most energy plants will use 9-10 percent of the gas that's utilized actually in the plant itself. We're typically going to be somewhere in the 6-8 percent range. So that has a big impact, it's about a 30 percent improvement in efficiency, therefore there's 30 percent less greenhouse gas emission," he said.
Officials said they're on track to begin construction in the second quarter of 2015, which also creates about 1,000 construction jobs for a four-year period, along with a permanent workforce of 65-70 and indirect support of about 175 positions.
The project has progressed extremely quickly. It was only a year ago they announced plans for the LNG export facility.
"Looks like the project is moving swiftly and we look forward to the day we do the ribbon cutting out at the property and have the first ship of LNG exported out of Southwest Louisiana," said board commissioner John LeBlanc.
Port Director William Rase also shared his thoughts, "I know all the local political groups and government agencies are very much in favor of what your projects going to bring to the area, so again thank you very much."
Operations are scheduled to begin in 2018.
Officials will hold a ribbon-cutting ceremony Thursday morning for their new office in Lake Charles.