LNG Limited, Meridian LNG extend offtake deal

Perth-based LNG Limited extended the financial close date of the offtake agreement with Meridian LNG for an additional three months to June 30. 

The initial agreement between LNG Limited and Meridian LNG for liquefied natural gas volumes from the Magnolia LNG export project in the United States was signed on July 23, 2015.

This is the second extension of the financial close for the agreement after it was prolonged in December last year.

LNG Limited noted in its statement on Thursday that the three-month extension allows both companies to maintain commercial flexibility.

All other provisions of the governing agreements not specifically amended by this extension remain in full force and effect.

Under the deal signed in 2015, Meridian LNG agreed to lift up to 2 million tons per year of the chilled fuel from the Magnolia LNG project for an initial term of 20 years with an option to extend the term by additional five years.

The Magnolia LNG project being developed in the Port of Lake Charles, Louisiana, will have a liquefaction capacity of 8 million tons per annum.