Australia's LNG Ltd. received authorization from the U.S. Department of Energy to expand the export capacity of its proposed Magnolia LNG LLC terminal by 0.8 million tonnes per annum for deliveries to countries that have free trade agreements with the U.S.

With the DOE approval, Magnolia LNG is now cleared to export up to 8.8 mtpa from the planned terminal in the Port of Lake Charles, La., according to a March 25 news release. The approval is valid for LNG sales with a 25-year term beginning either on the date of first export or on Feb. 26, 2023.

The approval should provide Magnolia LNG's customers with "added flexibility" in exporting gas, said LNG Ltd. Managing Director and CEO Greg Vesey. He said contract negotiations with offtakers are "at an advanced stage."

The Magnolia LNG project involves the construction of up to four liquefaction trains with an LNG production capacity of 2.2 mtpa each, as well as two 160,000-cubic-meter storage tanks and ship, barge and truck loading capabilities. After a postponement due to trade tensions between the U.S. and China, LNG Ltd. now expects to make a final investment decision on the project in the first part of 2019.