Perth firm secures US gas deal
Perth-based company LNGL has secured a deal US firm Magnolia LNG to build a range of gas liquefaction facilities.
LNGL has signed a binding agreement with Magnolia to deal with up to 2 million tonnes of gas per year from the Meridian LNG project in Louisiana.
“This is a significant mile-stone for Magnolia toward fully subscribing our 8mtpa [million tonnes per annum] project,” said Magnolia LNG chief commercial officer Rick Cape.
LNGL managing director Maurice Brand has told local media that market interest allowed them to ask Magnolia’s construction contractor to price the full 8mtpa, rather than just the first 4mtpa phase.
LNGL will build a four LNG-train facility in a shipping channel to liquefy gas for several nearby operations, bringing in potentially large processing fees.
The Meridian deal covers a 20-year term, with options to extend for another five years. It demands a firm annual capacity of 1.7mtpa, but includes a further 300,000t that will be offered at Magnolia’s discretion.
Mr Brand said details of other binding contracts should come later in the year.