Meridian LNG Holdings Corp. has entered into a 20-year gas sales agreement with E.ON Global Commodities SE (EGC), the trading unit of E.ON SE.
Under the agreement, EGC will purchase up to 2 million tpy of regasified LNG from Meridian LNG at market-reflective conditions to be delivered at the UK's National Balancing Point. Meridian LNG intends to deliver the LNG through its planned Port Meridian import and regasification terminal.
Under the terms of the agreement, EGC will also have the opportunity to purchase incremental volumes should they be made available, of up to 750 million ft3/d (the estimated maximum daily throughput of the Port Meridian terminal).
Meridian LNG has previously signed a 20-year, 2 million tpy liquefaction term sheet with Magnolia LNG LLC, the owners of the proposed Magnolia LNG facility in Lake Charles, Louisiana, US, and anticipates entering into a binding liquefaction tolling capacity agreement shortly. The tolling agreement, together with related supply and pipeline agreements, is expected to provide 2 million tpy of LNG to Meridian LNG from early 2019. Magnolia LNG is a wholly owned subsidiary of Liquefied Natural Gas Ltd (LNG Ltd).
Christopher Delbrück, CEO of EGC SE, said: "This contract is an important step forward for our gas business. It builds on our already diverse supply portfolio and provides further momentum for the business. As gas markets in North America, Europe and Asia become increasingly interconnected, LNG is becoming a critical enabler for the optimisation of E.ON's asset base."
Meridian LNG President and CEO, Roger Whelan, added:"This gas sale agreement with EGC is a very significant step forward for Meridian LNG. The offtake agreement is a critical requirement for the launch of our Port Meridian UK regasification terminal, which when combined with our Joint Development Agreement with shipping and regasification partner Höegh LNG, and the anticipated supply from Magnolia LNG, completes a unique, low-cost and flexible LNG supply chain into Europe."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/23042015/meridian-lng-enters-gas-sales-agreement-with-eon-636/