Magnolia LNG, Meridian in liquefaction tolling deal
LNG Limited’s Magnolia LNG has signed an agreement with Meridian LNG for firm capacity rights for up to 2 million tonnes per annum at Magnolia LNG, located on the Calcasieu shipping channel in the Lake Charles, Louisiana.
Under the liquefaction tolling agreement, Magnolia will provide liquefaction services to Meridian LNG over an initial term of 20 years, with option to extend by a further 5 years in return for monthly capacity payments. Parties agreed a firm annual capacity of 1.7 mtpa with a further 0.3 mtpa to be offered at Magnolia’s discretion.
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 under the 20-year gas sales agreement.
President of Magnolia LNG, Maurice Brand said, “Financial close for the Magnolia project is planned for first quarter 2016. The Magnolia project remains on schedule to provide first LNG in December 2018 with full LNG supply of 8 mtpa completed in 2019.”
Image: LNG Limited