Magnolia LNG, 100%-owned project company of Liquefied Natural Gas Ltd (LNGL), signed an agreement with Meridian LNG Holdings for firm capacity rights for up to 2mtpa at Magnolia LNG, located on the Calcasieu shipping channel in the Lake Charles District, Louisiana.
Under the liquefaction tolling agreement (LTA), Magnolia will provide liquefaction services to Meridian LNG over the term of the contract in return for monthly capacity payments. Meridian LNG is responsible for procurement and delivery of feed gas to the liquefaction plant and for arranging all LNG shipping required to transport the LNG from the liquefaction plant to its customers. Meridian LNG intends to deliver the LNG to Port Meridian, its Höegh LNG-operated floating re‐gasification terminal in the UK, with the gas delivered to E.ON Global Commodities (EGC) under the 20‐year gas sales agreement (GSA) executed and announced by Meridian LNG on 23 April 2015.
Key terms of the LTA include an initial term of 20 years, with option to extend by a further 5 years; a firm annual capacity of 1.7mtpa with a further 0.3mtpa to be offered at Magnolia’s discretion provided Magnolia achieves financial close no later than 30 June 2016.
