Magnolia LNG Project Moves Forward

Liquefied Natural Gas Limited said that Merlin Advisors has been appointed as the Lenders’ Engineer for the company’s 8 million tonne per annum Magnolia LNG project development in Lake Charles, Louisiana, United States.

Under the engagement Merlin’s scope of work will generally comprise 2 key phases:

Phase 1:

– Review of the current status of the project, including the site, front end engineering design, material contract terms and development plans and schedule, to identify any issues which could potentially impact project delivery;

– Ongoing review of the project development to provide early identification of any potential bankability and project financing issues.

Phase 1 is a critical process as it will enable the company to work with BNP Paribas (the Project’s financial adviser and lead debt arranger) and Merlin to identify and address any potential issues, including those with financing implications, early in the project development process.

Phase 2:

– Detailed Bankability Due Diligence Report, which will be a key document in relation to the company’s Final Detailed Project Feasibility Study and the Project Information Memorandum to be issued to prospective project debt financiers, including major international banks and Export Credit Agencies.

The company’s Chief Financial Officer, Norman Marshall, said: “Merlin brings a wealth of LNG and energy industry experience to the Project. While Merlin will be working specifically on behalf of the Project lenders, both Phase 1 and Phase 2 will be very interactive processes, between BNP Paribas, Merlin and the Company, to assist the Company ensure the Project remains bankable.”

“We are now working closely with BNP Paribas on the engagement of the lenders’ legal counsel, which will also be a critical role to assist ensure all material Project contracts and agreements comply with international project financing requirements.”