Monkey Island LNG (MILNG), a private company addressing the global energy crisis and growing demand for liquefied natural gas (LNG) through the development of U.S. natural gas infrastructure, has secured a memorandum of understanding (MoU) for the offtake of liquefied natural gas (LNG) from its planned world-scale natural gas liquefaction facility in Cameron Parish, Louisiana.
Covering the output of the U.S. Gulf Coast project’s first liquefaction train with total potential revenues exceeding $35 billion when converted to a sales and purchase agreement (SPA), this MoU is interpreted to signal strong market demand for MILNG’s TrueCost LNG model and support progress toward regulatory milestones and a final investment decision (FID).
The MoU with an undisclosed investment-grade international oil company (IOC) is for the offtake of up to 5.20 million tonnes per annum (mtpa) of LNG from Monkey Island LNG’s 26 mtpa LNG export facility, which is being developed in two phases, with Phase 1 targeting 15.6 mtpa across three trains. While the IOC’s name remains confidential at this stage, this deal is said to demonstrate a growing commercial demand for MILNG’s TrueCost LNG model.
Greg Michaels , CEO of MILNG, commented: “Partnering with a company of this caliber highlights the depth of industry confidence in MILNG’s next-generation development strategy. This agreement is an unprecedented milestone. Securing an MOU for up to 5.20 mtpa with an investment-grade counterparty not only validates our commercial model but also provides critical momentum as we move toward regulatory approvals and final investment decision.”
The company believes that this MoU reinforces its commercial strategy of building long-term, creditworthy offtake partnerships that support financing and development of the project’s 15.6 mtpa Phase 1, while being in alignment with a broader trend of buyers seeking contract transparency and operational reliability in a dynamic global LNG market.
Michaels added: “With regulatory advancements underway, engineering contracts awarded, a long-term supply agreement secured, and now a major offtake agreement, MILNG has positioned itself as a next-generation leader in the global LNG marketplace. With the strong market validation on our differentiated development model, we look forward to playing a key role in the next wave of U.S. LNG exports.”
To this end, the firm continues to advance commercial and engineering milestones across the project and claims to be in active discussions with additional offtakers for the remaining volumes on Phase 1. Located on Monkey Island in Cameron Parish, Louisiana, the project sits just 2 miles inland from the Gulf of Mexico.
While McDermott is in charge of front-end engineering and planning services for the Monkey Island LNG facility, ConocoPhillips’ Optimized Cascade process has been selected for this U.S. project.