UK LNG import venture for offshore Cumbria in northwest England has tolling accord extended

Monday, 25 June 2018

The developer, with fully approved plans to build the Magnolia LNG plant at Lake Charles in the US state of Louisiana and at Point Tupper in Richmond County in the Canadian Atlantic Coast province of Nova Scotia, said the Meridian binding offtake agreement would now run until September 30, 2018.

“This three-month extension allows both parties to maintain commercial flexibility,” said LNG Ltd., a company listed on the Australian Securities Exchange.

“All other provisions of the governing agreements not specifically amended by this extension remain in full force and effect,” the company added.

“LNG Ltd’s agreement with Meridian LNG was signed on 23 July 2015 and included firm capacity rights at Magnolia for up to 2 million tonnes per annum for an initial term of 20 years with an option to extend by a further five years,” the company explained.

The Meridian LNG project in the UK was formed by the Canadian equity fund West Face Capital that had merged with Liberty Natural Gas of the US.

The UK LNG facility would be offshore the Port of Barrow, currently owned and operated by Associated British Ports.

Meridian has been assembling strategic assets in recent years to develop a business in the global gas value chain.

In addition to its liquefaction tolling agreement with the Magnolia project, it has a gas sales agreement with German utility and energy company Uniper.

LNG Ltd said recently it was continuing to focus on marketing efforts to secure more marketing agreements for Magnolia and for the Canadian venture called Bear Head LNG.

Its Magnolia project engineering, procurement and construction contract with the joint venture comprising KBR of the US and South Korea’s SK Engineering and Construction has also been extended until the end of 2018.