Magnolia, Meridian LNG offtake deal extended

An offtake agreement between US Magnolia LNG export project in Louisiana and Meridian LNG, a proposed FSRU-based import project in the UK, has been extended.

The proposed 8mtpa Magnolia LNG and UK’s Meridian LNG have agreed to further extend the financial close date condition precedent for Magnolia LNG from the end of this year to November 30, 2017, according to a statement by Magnolia LNG owner, Australia’s LNG limited.

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

LNG Limited’s CEO, Greg Vesey, said that “the extension of time with Meridian LNG provides additional time for Magnolia LNG to finalize additional offtake agreements and allows for a typical timeline to conclude both project equity and debt following the execution of offtake agreements.”

Magnolia LNG signed a 20-year offtake agreement in July 2015 for 2mtpa into Meridian’s proposed FSRU in the UK.

The volumes were intended to supply a contract with German’s E.ON. Meridian LNG and E.ON signed a 20-year gas sales agreement in July 2015.

The Port Meridian LNG import project, designed for a Höegh LNG FSRU, would be located in Morecambe Bay offshore Barrow in Furness.

LNG World News Staff