Meridian LNG Holdings Corp. has advised Magnolia LNG LLC that it intends to progress the 20-year liquefaction tolling agreement (LTA) with Magnolia LNG, after it executed a 20-year gas sales agreement (GSA) with E.On Global Commodities SE.
Magnolia LNG LLC is a 100% owned project company of Liquefied Natural Gas Ltd’s (LNG Ltd).
Magnolia and Meridian LNG have substantially completed the negotiation of a LTA, agreeing key commercial terms and will now move forward to complete binding agreements for a total of 2 million tpy. LNG Ltd will announce the LTA terms upon execution of the binding contract.
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 Hoegh 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 Hoegh's Floating Storage and Regasification Units (FSRU) vessels. Meridian LNG will deliver regasified LNG to E.On Commodities on the UK National Transmission System (NTS) pursuant to the GSA.
Magnolia LNG’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.
"We are also pleased with the progress being made on additional tolling agreements, and LNG sales and purchase agreements and are confident we will close out the full 8 million tpy of Magnolia LNG production capacity."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/24042015/magnolia-lng-negotiates-tolling-agreement-with-meridian-lng-641/