LNG Limited, Meridian scrap Magnolia deal
Perth-based LNG Limited said the Magnolia LNG liquefaction tolling agreement signed with Meridian LNG will not be extended beyond its current date of December 31, 2018.
The company said on Friday that the parties have mutually agreed not to extend the agreement that was initially signed in July 2015 and has been extended six times since.
“LNG Limited is appreciative of the relationship we have enjoyed with Meridian LNG. However, this decision allows us to free up desired capacity from Magnolia LNG for offtakers that are more closely aligned with Magnolia’s development needs,” said Greg Vesey, managing director and CEO, LNG Limited.
The company will continue to market Magnolia LNG as it moves towards the final investment decision.
LNG Limited is proposing to build the Magnolia LNG project in the Port of Lake Charles in Louisiana, USA. The facility will include up to four 2.2 mtpa liquefaction trains, two 160,000-cbm storage tanks, truck loading facilities and supporting infrastructure.
Earlier this week, the company extended the $4.35 billion binding engineering, procurement, and construction (EPC) contract with the KBR-led joint venture, KSJV, through to June 30, 2019.