Magnolia Rolls Deadline with UK Terminal

Australia-listed LNG Limited and UK import project developer Meridian LNG have again further extended the financial close date of their offtake agreement for LNGL’s US-based Magnolia LNG project, LNGL said March 29.

The three-month extension takes the close date to June 30 and “allows both parties to maintain commercial flexibility,” LNGL said. Both sides had previously rolled the deadline from December 31 2016 to November 30 2017.

LNGL’s agreement with Meridian LNG was signed in July 2015 and included firm capacity rights at Magnolia to offtake up to 2mn metric tons per year for an initial term of 20 years with an option to extend by a further five years.

The deal with Meridian LNG is through LNGL’s 100% owned project company, Magnolia LNG, which is developing an 8mn metric tons per year or larger LNG export terminal in the Port of Lake Charles, Louisiana, US.

In October 2012, Meridian LNG purchased the UK Port Meridian project from Hoegh LNG. Port Meridian is a proposed LNG import project is designed for a floating storage and regasification unit (FSRU) to be connected by subsea pipeline to Britain's national gas grid at Barrow-in-Furness on northwest England's Irish Sea coast. 

Meridian LNG announced April 23 2015 it had signed a 20 year Gas Sale Agreement for the full nameplate capacity at Port Meridian with E.ON Global Commodities (now Uniper), to whom all gas delivered by Meridian LNG into the UK via Port Meridian would be sold exclusively.