E.ON, Meridian LNG ink 20-year gas sales deal

Meridian LNG Holdings and E.ON Global Commodities, the trading unit of E.ON, have entered into a 20-year gas sales deal.

Under the deal, EGC has agreed to purchase up to two million tons of regasified LNG per year from Meridian LNG at market-reflective conditions to be delivered at UK’s National Balancing Point.

Meridian LNG intends to deliver such LNG through its planned Port Meridian import and regasification terminal located in Morecambe Bay offshore Barrow in Furness, the company said in a statement.

EGC will also have the opportunity to purchase incremental volumes should they be made available, of up to 750 million standard cubic feet a day, the estimated maximum daily throughput of the Port Meridian terminal.

Meridian LNG has previously signed a 20-year, 2.0 mtpa liquefaction term sheet with Magnolia LNG, the owners of the proposed Magnolia LNG facility in Lake Charles, LA, and anticipates entering into a binding liquefaction tolling capacity agreement shortly. The tolling agreement together with related supply and pipeline agreements is expected to provide 2.0 mtpa of LNG to Meridian LNG from early 2019.

The Port Meridian project will consist of a floating storage and regasification unit, a subsea pipeline, and onshore facilities connecting into the UK National Transmission System. All major construction permits and planning approvals for Port Meridian have been obtained and gas deliveries are expected to commence in 2019.

Image: Höegh LNG