Vietnam deal brings Magnolia LNG one step closer to construction

VIDEO: Vietnam deal brings Magnolia LNG one step closer to construction

LAKE CHARLES, La. (KPLC) - Earlier this week Magnolia LNG announced it’s reached a 20-year sale and purchase agreement with Vietnam to supply a power project in the Southeast Asian country.

Magnolia LNG is the planned liquefied natural gas export terminal on the Industrial Canal off the Calcasieu Shipping Channel in Cameron Parish.

“The demand for LNG will start outstripping supply in approximately 2023 or 2024 and we believe Magnolia is perfectly positioned to meet that demand in that time frame,” Hirschfield says they have been given the green light by the Federal Energy Regulatory Commission, or FERC, and are construction ready, but want to wait to make their Final Investment Decision until they have sold 6-million tons of LNG. He says Magnolia LNG looks like it is set to be ready between 2023 and 2024.

Once built they say the facility will have the capacity to make 8.8 million tons of LNG a year. Their agreement with Vietnam is for 2 million tons a year.

With that deal being the only agreement at this time, Hirschfield says the company is hopeful the announcement will draw in potential buyers. He couldn’t comment on any potential sales at this time.

After meeting its sales goal of 6 million tons of LNG a year, Hirschfield says Magnolia LNG will begin the hiring process, and while they have a contract with KBR, he says they will be looking to hire locally.

“We know that there is an incredibly qualified workforce in Southwest Louisiana, in the Lake Charles area, and where we can absolutely use them we will.”

There will be 1,500 site workers and 200 operational staff at the export facility.

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