Liquefied Natural Gas Limited announced the signing of an exclusive Site Lease Option Agreement with the Lake Charles Harbour and Terminal District Authority (Port Authority), in relation to the project site for LNG Ltd’s proposed Magnolia LNG Project.
The legally binding Lease Option Agreement gives LNG Ltd exclusive rights to the project site and time to obtain all necessary approvals, prior to committing to the full terms of the Site Ground Lease.
Key terms of the two agreements include:
Lease Option Agreement:
Minimum LNG Throughput Fee – based on 4 mtpa and payable annually in advance, from the earlier of commercial operations date or 1 December 2017.
Throughput Fee – based on LNG loaded onto LNG ships in excess of 4 mtpa, payable annually in arrears.
LNG Ltd’s Managing Director, Maurice Brand , said “The securing of the project site is a key fundamental to the future successful development of the MLNG project. The project site has many valuable features, including being located on an established LNG shipping channel and close to substantial gas resources and major existing pipeline networks.”
Mr Brand further said, “We again extend our thanks to the Port Authority which continues to be very supportive of the MLNG Project and was commercially pragmatic in the structuring of these two key agreements”.
[mappress] LNG World News Staff, March 07, 2013; Image: LNG Ltd.