Notice2023-28236
Magnolia LNG, LLC; Application for Long-Term Authorization To Export Liquefied Natural Gas to Non-Free Trade Agreement Countries
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Published
December 22, 2023
Issuing agencies
Energy Department
Abstract
The Office of Fossil Energy and Carbon Management (FECM) of the Department of Energy (DOE) gives notice (Notice) of receipt of an application (Application), filed by Magnolia LNG, LLC (Magnolia) on November 29, 2023. Magnolia requests long-term, multi-contract authorization to export domestically produced liquefied natural gas (LNG) in a volume equivalent to approximately 449 billion cubic feet (Bcf) of natural gas per year (Bcf/y), or 1.23 Bcf per day (Bcf/d), from the proposed Magnolia terminal facilities to be constructed and operated near Lake Charles, Louisiana (Magnolia LNG Project). Magnolia filed the Application under the Natural Gas Act (NGA).
Full Text
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<title>Federal Register, Volume 88 Issue 245 (Friday, December 22, 2023)</title>
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[Federal Register Volume 88, Number 245 (Friday, December 22, 2023)]
[Notices]
[Pages 88600-88602]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28236]
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DEPARTMENT OF ENERGY
[Docket No. 23-137-LNG]
Magnolia LNG, LLC; Application for Long-Term Authorization To
Export Liquefied Natural Gas to Non-Free Trade Agreement Countries
AGENCY: Office of Fossil Energy and Carbon Management, Department of
Energy.
ACTION: Notice of application.
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SUMMARY: The Office of Fossil Energy and Carbon Management (FECM) of
the Department of Energy (DOE) gives notice (Notice) of receipt of an
application (Application), filed by Magnolia LNG, LLC (Magnolia) on
November 29, 2023. Magnolia requests long-term, multi-contract
authorization to export domestically produced liquefied natural gas
(LNG) in a volume equivalent to approximately 449 billion cubic feet
(Bcf) of natural gas per year (Bcf/y), or 1.23 Bcf per day (Bcf/d),
from the proposed Magnolia terminal facilities to be constructed and
operated near Lake Charles, Louisiana (Magnolia LNG Project). Magnolia
filed the Application under the Natural Gas Act (NGA).
DATES: Protests, motions to intervene, or notices of intervention, as
applicable, and written comments are to be filed as detailed in the
Public Comment Procedures section no later than 4:30 p.m., Eastern
time, February 20, 2024.
ADDRESSES:
[[Page 88601]]
Electronic Filing by email (Strongly encouraged):
<a href="/cdn-cgi/l/email-protection#503635223731231038217e343f357e373f26"><span class="__cf_email__" data-cfemail="9ef8fbecf9ffeddef6efb0faf1fbb0f9f1e8">[email protected]</span></a>.
Postal Mail, Hand Delivery, or Private Delivery Services (e.g.,
FedEx, UPS, etc.): U.S. Department of Energy (FE-34), Office of
Regulation, Analysis, and Engagement, Office of Fossil Energy and
Carbon Management, Forrestal Building, Room 3E-056, 1000 Independence
Avenue SW, Washington, DC 20585.
Due to potential delays in DOE's receipt and processing of mail
sent through the U.S. Postal Service, we encourage respondents to
submit filings electronically to ensure timely receipt.
FOR FURTHER INFORMATION CONTACT:
Jennifer Wade or Peri Ulrey, U.S. Department of Energy (FE-34), Office
of Regulation, Analysis, and Engagement, Office of Resource
Sustainability, Office of Fossil Energy and Carbon Management,
Forrestal Building, Room 3E-042, 1000 Independence Avenue SW,
Washington, DC 20585, (202) 586-4749 or (202) 586-7893,
<a href="/cdn-cgi/l/email-protection#513b343f3f383734237f263035341139207f353e347f363e27"><span class="__cf_email__" data-cfemail="6e040b000007080b1c40190f0a0b2e061f400a010b40090118">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#671702150e49120b15021e270f164903080249000811"><span class="__cf_email__" data-cfemail="522237203b7c273e20372b123a237c363d377c353d24">[email protected]</span></a>
Cassandra Bernstein, U.S. Department of Energy (GC-76), Office of the
Assistant General Counsel for Energy Delivery and Resilience, Forrestal
Building, Room 6D-033, 1000 Independence Avenue SW, Washington, DC
20585, (202) 586-9793, <a href="/cdn-cgi/l/email-protection#a7c4c6d4d4c6c9c3d5c689c5c2d5c9d4d3c2cec9e7cfd689c3c8c289c0c8d1"><span class="__cf_email__" data-cfemail="fe9d9f8d8d9f909a8c9fd09c9b8c908d8a9b9790be968fd09a919bd0999188">[email protected]</span></a>
SUPPLEMENTARY INFORMATION: Magnolia requests authorization to export
domestically produced LNG by ocean-going carrier from the proposed
Magnolia LNG Project, to be constructed and located on Industrial Canal
South Shore PLC Tract 475, an approximately 115-acre parcel of land in
Calcasieu Parish, Louisiana, under a long-term lease with the Lake
Charles Harbor & Terminal District. Magnolia states that the proposed
LNG Project would include four LNG trains, two LNG storage tanks each
with capacity of approximately 160,000 cubic meters, and vessel loading
facilities, and would be located in an area zoned for heavy industrial
use and consistent with other industrial facilities along the
shoreline. Magnolia seeks to export this LNG from the liquefaction
project in a volume equivalent to approximately 449 Bcf/yr of natural
gas (1.23 Bcf/d) to any country with which the United States does not
have a free trade agreement (FTA) requiring national treatment for
trade in natural gas and LNG, which has or in the future develops the
capacity to import LNG via ocean-going carrier, and with which trade is
not prohibited by U.S. law or policy (non-FTA countries), pursuant to
section 3(a) of the NGA.\1\
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\1\ 15 U.S.C. 717b(a).
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In the Application, Magnolia notes that it had already been
authorized in DOE/FE Order No. 3909 \2\ (later amended by DOE/FECM
Order No. 3909-C) to export the same volume of LNG from the proposed
Magnolia LNG Project to non-FTA countries. Order No. 3909-C required
Magnolia to commence commercial operations at its LNG Project by
November 30, 2023. On March 20, 2023,\3\ and with a subsequent
amendment on May 30, 2023,\4\ Magnolia asked DOE to postpone its
commencement deadline. On November 29, 2023--the same day it filed the
present Application--Magnolia asked to withdraw its request for a later
commencement date, effective immediately.\5\ Order No. 3909-C then
expired on its own terms at the end of November 2023.\6\
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\2\ Magnolia LNG, LLC, DOE/FE Order No. 3909, Docket No. 13-132-
LNG, Opinion and Order Granting Long-Term, Multi-Contract
Authorization to Export Liquefied Natural Gas by Vessel from the
Proposed Magnolia LNG Terminal to be Constructed in Lake Charles,
Louisiana, to Non-Free Trade Agreement Nations (Nov. 30, 2016),
reh'g denied, DOE/FE Order No. 3909-A (Apr. 2, 2018), amended by
DOE/FE Order No. 3909-B (Dec. 10, 2020), further amended by DOE/FECM
Order No. 3909-C (Apr. 27, 2022), reh'g denied, DOE/FECM Order No.
3909-D (June 24, 2022). Note that on July 4, 2021, the Office of
Fossil Energy (FE) changed its name to the Office of Fossil Energy
and Carbon Management.
\3\ Magnolia LNG, LLC, Docket No. 13-132-LNG, Request of
Magnolia LNG, LLC for Limited Extension to Start Date of Term of
Authorization (Mar. 20, 2023).
\4\ Magnolia LNG, LLC, Docket No. 13-132-LNG, Answer of Magnolia
LNG, LLC in Opposition to the Motion to Intervene and Protest of
Sierra Club, et al. and Supplement to Request to Extend Commencement
Deadline (May 30, 2023).
\5\ Magnolia LNG, LLC, Docket No. 13-132-LNG, Withdrawal of
Request for Extension of Commencement of Service Deadline (Nov. 29,
2023).
\6\ Magnolia LNG, LLC, Docket No. 13-132-LNG, Administrative
Notice of Expiration of Non-FTA Authorization (Dec. 8, 2023); see
Order No. 3909-C at Ordering Para. D.
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Magnolia remains authorized to export the equivalent volume of LNG
to countries with which the U.S. has an FTA requiring national
treatment for trade in natural gas (FTA countries), for a term
extending through December 31, 2050.\7\
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\7\ Magnolia LNG, LLC, Order No. 3245, Docket No. 12-183-LNG,
Order Granting Long-Term, Multi-Contract Authorization to Export
Liquefied Natural Gas by Vessel from the Proposed Magnolia LNG
Terminal in Lake Charles, Louisiana, to Free Trade Agreement Nations
(Feb. 26, 2013); Magnolia LNG, LLC, Order No. 3406, Docket No. 13-
131-LNG, Order Granting Long-Term, Multi-Contract Authorization to
Export Liquefied Natural Gas by Vessel from the Proposed Magnolia
LNG Terminal in Lake Charles, Louisiana, to Free Trade Agreement
Nations (Mar. 5, 2014). On December 10, 2020, both orders were
amended to extend the effective export term through December 31,
2050.
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Magnolia states that its Application ``requests a new authorization
of the same volumes in light of the expiration of the original
authorization on November 30, 2023,'' noting that the Federal Energy
Regulatory Commission's approval of the siting, construction,
ownership, and operation of the Magnolia LNG Project remains in effect.
Magnolia seeks this authorization on its own behalf and as agent
for other entities that hold title to the LNG at the point of export.
Magnolia requests the authorization for a term commencing on the
earlier of the date of first export or seven (7) years from the date of
issuance of the requested authorization, and extending through December
31, 2050.
Additional details can be found in the Application, posted on the
DOE website at <a href="https://www.energy.gov/sites/default/files/2023-12/Magnolia%20LNG%20DOE%20NFTA%20Export%20Authorization%20Application%20%28Nov.%2029%202023%29.pdf">https://www.energy.gov/sites/default/files/2023-12/Magnolia%20LNG%20DOE%20NFTA%20Export%20Authorization%20Application%20%28Nov.%2029%202023%29.pdf</a>.
DOE Evaluation
In reviewing Magnolia's Application, DOE will consider any issues
required by law or policy. DOE will consider domestic need for the
natural gas, as well as any other issues determined to be appropriate,
including whether the arrangement is consistent with DOE's policy of
promoting competition in the marketplace by allowing commercial parties
to freely negotiate their own trade arrangements. As part of this
analysis, DOE will consider the study entitled, Macroeconomic Outcomes
of Market Determined Levels of U.S. LNG Exports (2018 LNG Export
Study),\8\ and DOE's response to public comments received on that
Study.\9\
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\8\ See NERA Economic Consulting, Macroeconomic Outcomes of
Market Determined Levels of U.S. LNG Exports (June 7, 2018),
<a href="http://www.energy.gov/sites/prod/files/2018/06/f52/Macroeconomic%20LNG%20Export%20Study%202018.pdf">www.energy.gov/sites/prod/files/2018/06/f52/Macroeconomic%20LNG%20Export%20Study%202018.pdf</a>.
\9\ U.S. Dep't of Energy, Study on Macroeconomic Outcomes of LNG
Exports: Response to Comments Received on Study; Notice of Response
to Comments, 83 FR 67251 (Dec. 28, 2018).
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Additionally, DOE will consider the following environmental
documents:
<bullet> Addendum to Environmental Review Documents Concerning
Exports of Natural Gas From the United States, 79 FR 48132 (Aug. 15,
2014); \10\
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\10\ The Addendum and related documents are available at
<a href="http://www.energy.gov/fecm/addendum-environmental-review-documents-concerning-exports-natural-gas-united-states">www.energy.gov/fecm/addendum-environmental-review-documents-concerning-exports-natural-gas-united-states</a>.
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<bullet> Life Cycle Greenhouse Gas Perspective on Exporting
Liquefied
[[Page 88602]]
Natural Gas From the United States, 79 FR 32260 (June 4, 2014); \11\
and
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\11\ The 2014 Life Cycle Greenhouse Gas Report is available at
<a href="http://www.energy.gov/fecm/life-cycle-greenhouse-gas-perspective-exporting-liquefied-natural-gas-united-states">www.energy.gov/fecm/life-cycle-greenhouse-gas-perspective-exporting-liquefied-natural-gas-united-states</a>.
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<bullet> Life Cycle Greenhouse Gas Perspective on Exporting
Liquefied Natural Gas From the United States: 2019 Update, 84 FR 49278
(Sept. 19, 2019), and DOE's response to public comments received on
that study.\12\
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\12\ U.S. Dep't of Energy, Life Cycle Greenhouse Gas Perspective
on Exporting Liquefied Natural Gas from the United States: 2019
Update--Response to Comments, 85 FR 72 (Jan. 2, 2020). The 2019
Update and related documents are available at <a href="https://fossil.energy.gov/app/docketindex/docket/index/21">https://fossil.energy.gov/app/docketindex/docket/index/21</a>.
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Parties that may oppose this Application should address these
issues and documents in their comments and protests, as well as other
issues deemed relevant to the Application.
The National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et
seq., requires DOE to give appropriate consideration to the
environmental effects of its proposed decisions. No final decision will
be issued in this proceeding until DOE has met its NEPA
responsibilities.
Public Comment Procedures
In response to this Notice, any person may file a protest,
comments, or a motion to intervene or notice of intervention, as
applicable. Interested parties will be provided 60 days from the date
of publication of this Notice in which to submit comments, protests,
motions to intervene, or notices of intervention.
Any person wishing to become a party to this proceeding evaluating
Magnolia's Application must file a motion to intervene or notice of
intervention. The filing of comments or a protest with respect to the
Application will not serve to make the commenter or protestant a party
to this proceeding, although protests and comments received from
persons who are not parties will be considered in determining the
appropriate action to be taken on the Application. All protests,
comments, motions to intervene, or notices of intervention must meet
the requirements specified by the regulations in 10 CFR part 590,
including the service requirements.
Filings may be submitted using one of the following methods:
(1) Submitting the filing electronically at <a href="/cdn-cgi/l/email-protection#05636077626476456d742b616a602b626a73"><span class="__cf_email__" data-cfemail="6c0a091e0b0d1f2c041d42080309420b031a">[email protected]</span></a>;
(2) Mailing the filing to the Office of Regulation, Analysis, and
Engagement at the address listed in the ADDRESSES section; or
(3) Hand delivering the filing to the Office of Regulation,
Analysis, and Engagement at the address listed in the ADDRESSES
section.
For administrative efficiency, DOE prefers filings to be filed
electronically. All filings must include a reference to ``Docket No.
23-137-LNG'' or ``Magnolia LNG, LLC Application'' in the title line.
For electronic submissions: Please include all related documents
and attachments (e.g., exhibits) in the original email correspondence.
Please do not include any active hyperlinks or password protection in
any of the documents or attachments related to the filing. All
electronic filings submitted to DOE must follow these guidelines to
ensure that all documents are filed in a timely manner.
The Notice, and any filed protests, motions to intervene, notices
of intervention, and comments will be available electronically on the
DOE website at <a href="http://www.energy.gov/fecm/regulation">www.energy.gov/fecm/regulation</a>.
A decisional record on the Application will be developed through
responses to this Notice by parties, including the parties' written
comments and replies thereto. Additional procedures will be used as
necessary to achieve a complete understanding of the facts and issues.
If an additional procedure is scheduled, notice will be provided to all
parties. If no party requests additional procedures, a final Opinion
and Order may be issued based on the official record, including the
Application and responses filed by parties pursuant to this Notice, in
accordance with 10 CFR 590.316.
Signed in Washington, DC, on December 18, 2023.
Amy Sweeney,
Director, Office of Regulation, Analysis, and Engagement, Office of
Resource Sustainability.
[FR Doc. 2023-28236 Filed 12-21-23; 8:45 am]
BILLING CODE 6450-01-P
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