FERC Approves Magnolia LNG Export Terminal Application

FERC issued an order today granting Magnolia LNG, LLC’s application to construct and operate a liquefaction and LNG export terminal at Lake Charles, La. and Kinder Morgan Louisiana Pipeline LLC’s application to construct an interconnected pipeline.  In approving the applications, FERC rejected arguments by Allegheny Defense Project and Sierra Club that FERC should find that Magnolia LNG’s application is contrary to the public interest because (1) “in addition to the direct impacts from construction and operation of the terminal, the exportation of gas will induce natural gas production activities with attendant adverse environmental impacts,” and (2) the project “will result in indirect environmental impacts from the combustion of exported gas in importing markets and exports may result in increased domestic gas prices that will result in increased reliance on coal as fuel at industrial and electric generation facilities, causing further adverse environmental impacts.”  FERC concluded that construction of the proposed facilities is an environmentally acceptable action if they are constructed and operated as described in the final Environmental Impact Statement and with the environmental mitigation measures included as conditions in the order.