Magnolia, Meridian extend tolling deal deadline

Magnolia LNG, a project company owned by Australia’s LNG Limited, said it has agreed to extend the financial close date for a tolling deal signed with Meridian LNG.

The deal has been extended from June 30 to December 31, 2016, Magnolia LNG informed in a statement on Monday.

Magnolia LNG signed in July last year a binding agreement with Meridian LNG for firm capacity rights for up to 2 million tonnes per annum (mtpa) at Magnolia LNG, located on the Calcasieu shipping channel in the Lake Charles District, State of Louisiana, USA.

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.

Meridian LNG plans 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 executed in April 2015.

LNG Limited’s CEO and President of Magnolia LNG, Maurice Brand, said that “financial close date for the Magnolia LNG project is dependent on the execution of further binding offtake agreements the timing of which is uncertain due to current market conditions. The extension of time with Meridian LNG provides additional time for Magnolia LNG to finalise additional offtake agreements and allows for a typical timeline to conclude both project equity and debt following the execution of offtake agreements.”

LNG World News Staff