Liquefied Natural Gas Limited’s unit Magnolia LNG said on Friday it has been notified by Meridian LNG that it intends to progress the 20-year liquefaction tolling agreement, now that the company has executed a 20-year gas sales agreement with E.On Global Commodities.
Magnolia and Meridian LNG have completed the negotiation of a tolling deal, agreeing key commercial terms and will now move forward to complete binding agreements for a total of 2 million ton per annum.
Under the proposed LTA, Meridian LNG will be responsible for delivery of gas to Magnolia for liquefaction, plant usage, storage, and delivery onto LNG ships arranged by Meridian. Magnolia will be paid monthly capacity fees over the 20-year tolling term.
Meridian LNG, together with its operating partner Höegh LNG, will deliver LNG from Magnolia to the Port Meridian LNG import terminal in the UK, as well as potentially to other destinations compatible with Höegh’s floating storage and regasification units (FSRU) vessels. Meridian LNG will deliver re-gasified LNG to E.On Commodities on the UK National Transmission System.
Magnolia’s Chief Commercial Officer, Rick Cape , said, “ we congratulate Meridian LNG on the signing of its gas sales agreement with E.On and look forward to concluding negotiations and execution of the Meridian LTA .”
Cape also said that a good progress is being made on additional tolling and LNG sales agreements, and the company is confident it will close out the full 8 mtpa of Magnolia LNG production capacity.
LNG World News Staff; Image: Magnolia LNG