The Directors of Liquefied Natural Gas Limited are pleased to advise that its 100% owned project company, Magnolia LNG, LLC (Magnolia), has been notified by Meridian LNG Holdings Corp. (Meridian LNG) that Meridian LNG intends to progress the 20‐year liquefaction tolling agreement (LTA) with Magnolia, now that Meridian LNG has executed a 20year gas sales agreement (GSA) with E.On Global Commodities SE (a wholly owned company of E.ON).
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 ton per annum (mtpa). The Company 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 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.