Australia's Liquefied Natural Gas Limited has signed an exclusive lease option agreement with the US' Lake Charles Harbour and Terminal District Authority for the site of its proposed Magnolia LNG project in Louisiana, the company said Thursday.
The agreement gives LNG Limited exclusive rights to the project site and time to obtain all necessary approvals, prior to committing to the full terms of the site ground lease, the company said. The option runs for four years. The Magnolia project would comprise two phases, each of which would involve the development of two 2 million mt/year LNG production trains, for a total of 8 million mt/year.
The Magnolia facility would treat and liquefy the gas, store the LNG and load it onto customers' ships, in consideration of a capacity and processing fee. "The securing of the project site is a key fundamental to the future successful development of the MLNG project," said LNG Limited Managing Director Maurice Brand. "The project site has many valuable features, including being located on an established LNG shipping channel and close to substantial gas resources and major existing pipeline networks."
