Secures Important Tax Incentive for Magnolia LNG
Perth, May 23, 2019 AEST (ABN Newswire) - LNG Limited (
ASX:LNG) (LNGLY:OTCMKTS) (LNGL or the Company) is pleased to announce that Magnolia LNG (Magnolia) has received its Industrial Tax Exemption Program (ITEP) incentive from the State of Louisiana following approval by the Louisiana Board of Commerce and Industry, local governments and Gov. John Bel Edwards. The ITEP program is designed to offer a tax incentive for manufacturers who make a commitment to jobs and payroll in Louisiana. Magnolia was eligible for the property tax incentive for a portion of the building and materials, machinery and equipment, and labor costs of Magnolia, a $4.354 billion project. Magnolia will generate 1,500 construction jobs and 200 permanent direct positions for Louisiana, as well as substantial cascading benefits into the Southwest Louisiana region and the State of Louisiana overall.
The savings from this exemption improve Magnolia's competitiveness in the global LNG market and provide an important economic boost to help the project along its path to a final investment approval.
"On behalf of LNG Limited's Board of Directors and my colleagues, I wish to thank Governor Edwards, Louisiana Economic Development (LED) Secretary Don Pierson, the Southwest Louisiana legislative delegation, Calcasieu Sheriff Tony Mancuso, the Calcasieu Parish Police Jury, Calcasieu Parish School Board, Lake Charles Mayor Nic Hunter, and the Port of Lake Charles for their steadfast support of Magnolia LNG and our ITEP application process," said Greg Vesey, Managing Director and Chief Executive Officer of LNG Limited. "We are aware of our corporate responsibility to the State of Louisiana and particularly the Lake Charles area, and we will continue to support the community through job creation and community involvement as Magnolia moves toward a final investment decision."
"Louisiana leads the U.S. as an exporter of liquefied natural gas, and the Magnolia LNG project will extend our state's production and technology leadership in this vitally important energy market," Gov. Edwards said. "By the end of 2019, Louisiana producers will generate enough LNG to fuel 24 million homes on a daily basis. Our next wave of LNG projects, which will include Magnolia, can raise that total to the equivalent of 63 million homes. With a projected 38 billion cubic feet of natural gas to be produced daily along the Gulf Coast, Louisiana is well-positioned to continue our LNG leadership."
"Projects such as Magnolia LNG generate thousands of important construction jobs on the front end, hundreds of high-paying permanent jobs once operations begin, and thousands more permanent new indirect jobs in the Louisiana economy," LED Secretary Don Pierson said. "At the same time that we are strengthening our midstream logistics and industrial economy in Louisiana, we're seeing major investors like LNG Limited provide key clean energy solutions for customers around the globe. Louisiana is proud to enable this key energy connection for our future."
ABOUT MAGNOLIA LNG PROJECT
Magnolia LNG proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2.2 mtpa or greater using the Company's patented OSMR(R) LNG process technology. Construction and operation includes two 160,000 m3 full containment storage tanks, ship, barge, and truck loading facilities, and supporting infrastructure. The LSTK EPC contract includes all elements of the project necessary to bring the facility into full guaranteed production operations. Magnolia LNG is fully permitted, having received its FERC Order and both FTA and non-FTA approval from the DOE. Final investment decision and initiation of construction is expected upon execution of sufficient offtake agreements to support financing.
About Liquefied Natural Gas Ltd
Liquefied Natural Gas Limited (
ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:
- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and
- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
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