LNGL, Meridian Further Extend Magnolia Offtake Agreement

The financial close date for the LNG offtake agreement between Australia-listed Americas-focused Liquefied Natural Gas Limited and UK-focused LNG import project developer Meridian LNG has once again been extended, LNGL said June 25.

The legally binding deal with Meridian through LNGL’s 100% owned project company Magnolia LNG has been extended a further three-months to September 30, 2018, LNGL said.

“This three-month extension continues to allow both parties to maintain commercial flexibility. All other provisions of the governing agreements not specifically amended by this extension remain in full force and effect,” it said.

LNGL’s agreement with Meridian was signed July 23, 2015, and included firm capacity rights at the US-based Magnolia LNG project for up to 2mn metric tons/year for an initial term of 20 years with an option to extend by a further five years. The LNG project is intended to have a capacity of 8mn metric tons per year and be based in the Port of Lake Charles, Louisiana.

In October 2012, Meridian LNG purchased the UK Port Meridian project from Hoegh LNG. Port Meridian is a proposed LNG import project designed for a FSRU to be connected by subsea pipeline to the national grid at Barrow-in-Furness in Lancashire, landing-point for the Morecambe Bay gas fields.