Liquefied Natural Gas Ltd (LNGL) has secured a commitment of up to $1.5bn from Stonepeak Partners for its Magnolia LNG project in the US.
LNGL owns 100% ownership in Magnolia LNG, which is developing 8 million tonne per annum (mtpa) or greater LNG export terminal, in the Port of Lake Charles, Louisiana.
The company announced that certain of its wholly owned subsidiaries have entered into an amended and restated Magnolia LNG equity commitment agreement (ECA) with Stonepeak and updated the associated Magnolia LLC agreement.
The amended ECA and LLC agreements substitute the existing Stonepeak agreements signed in October 2013
As part of amended agreement, Stonepeak has committed to fund the full Magnolia LNG project equity requirement.
The commitment of Stonepeak is a redeemable preferred interest in the Magnolia LNG project with a 12-year tenor from financial close.
LNGL has the right to own 100% of the common interest in Magnolia pre and post-financial close.
LNGL managing director and CEO Greg Vesey said: “This announcement signals a strong message to the LNG industry about our shared confidence in the virtues and advantages of the Magnolia LNG project as we continue our focus on finalizing offtake agreements and moving toward a final investment decision (FID)."
Stonepeak co-founder and senior managing director Trent Vichie said: “Stonepeak is bullish on the long-term outlook for US sourced LNG, which we believe can provide cheaper and cleaner fuels globally to underserved or stranded consumers, and we hope that Stonepeak's commitment to Magnolia can help bring additional low-cost LNG to market."
Image: LNGL owns 100% ownership in Magnolia LNG that is developing LNG export terminal in the Port of Lake Charles. Photo: courtesy of Liquefied Natural Gas Limited / ABN Newswire.