Glenfarne, a privately held energy infrastructure firm, has agreed to buy Magnolia LNG from its parent, Australia's LNG Ltd, for $2.25 million, according to the voluntary administrators appointed to review the parent company's assets.
The sale to the formerly largely unknown buyer follows the April 13 withdrawal of a takeover offer for LNG Ltd that the parent company had previously said it was “the best chance to save” the 8.8 mtpa export project.”
A deal with London-based Global Energy Megatrend Ltd. fell also through at the last minute and it was finally bought by a Delaware-based entity. The buyer is owned by Glenfarne Group LLC, that company itself disclosed in a statement.
Glenfarne, with offices in London and Lafayette, Louisiana, is a privately held industrial energy developer and operator with plans to complete the Magnolia LNG project. The company is interested in becoming an integrated natural gas firm by acquiring and participating in US gas fields and pipelines and operating liquefaction facilities.
“Magnolia LNG is a well-known and high-quality project,” said Brendan Duval, founder of Glenfarne. The new owner of Magnolia LNG wants to bring funding, marketing, development and construction experience to build and then operate the liquefaction and export plant. The project has not yet reached a final investment decision.
Glenfarne also is the majority owner, through a subsidiary called Alder Midstream, of another LNG project on the US Gulf Coast, Texas LNG Brownsville. The 4 mtpa project has all state and federal permits, though has not yet begun construction.