Magnolia LNG Inks HoA with Indian Firm

Magnolia LNG -- a developer of an 8mn mt/yr or larger LNG export terminal project in Lake Charles in Louisiana that is wholly-owned by Liquefied Natural Gas Ltd (LNGL) -- has signed a heads of agreement to supply 4mn metric tons/yr of LNG for 20 years to India's Vessel Gasification Solutions.  

VGS president Gaurav Tiwari said this will help the company bring a significant tranche of US-produced LNG to a key market on the Indian east coast.

Currently India has four operations LNG terminals, all on the west coast. In next five years more LNG terminals would be coming up on the east coast. This will help increase supplies to much under-served but significantly populated eastern states. VGS is proposing to build a floating storage and regasification unit (FSRU) at Kakinada port on the east coast.

India's government has said on many occasions that, if overall gas use is to increase nationwide, then eastern states need to play an important role. 

Magnolia LNG has US approvals to export to non-Free Trade Agreement countries but has yet to take a final investment decision or begin construction. LNGL is an Australia-listed company based in Perth, Western Australia. 

Shardul Sharma