LNG extends Magnolia contract deadline
PERTH (miningweekly.com) – ASX-listed Liquefied Natural Gas (LNG) has extended the financial close date of a binding agreement with Meridian LNG Holdings Corporation.
In July last year, LNG subsidiary Magnolia LNG signed an agreement with Meridian for capacity rights of up to two-million tonnes a year at Magnolia LNG, on the Calcasieu shipping channel in the US.
Under the liquefaction tolling agreement, Magnolia LNG would provide liquefaction services to Meridian over the term of the contract, in return for monthly capacity payments. Meridian would be responsible for procurement and delivery of the feed gas to the plant, and for arranging all LNG shipping required to transport the LNG from the plant to customers.
The agreement would have an initial 20-year term, but could be extended by a further five years.
LNG MD, CEO and president Maurice Brand said on Monday that the financial close date for the Magnolia LNG project was dependent on the execution of further binding offtake agreements, the timing of which were uncertain due to current market conditions.
“The extension of time with Meridian 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.”
The financial close of the Meridian deal had been moved from the end of June this year, until the end of December.
Magnolia LNG was developing an eight-million-tonne-a-year LNG export terminal in the US, with first LNG targeted in late 2018. The project plan includes four production trains with a two-million-tonne-a year capacity each.
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