LNGL secures US gas deal

A Perth-based company will benefit from a new LNG deal in the US, contracted to provide liquefaction services.

LNGL signed a binding agreement with Magnolia LNG to provide services for up to 2 million tonnes of gas to the Meridian LNG project in Louisiana.

LNGL managing director Maurice Brand said market interest had led them to ask Magnolia’s construction contractor to price all 8mtpa rather than only the first phase of 4mtpa.

Brand indicated the expectation that first gas would be reached in 2018, with full capacity to be reached in the following year.

Meridian LNG will be a four-train facility built in a shipping channel, which will provide liquefaction services to other companies for processing fees.

The West Australian said the Meridian deal has a 20-year term with an option to extend for five years.

The plant will have annual capacity of 1.7mtpa, with a further 300,000t to be offered at Magnolia’s discretion.

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