Magnolia LNG LLC, a unit of Australia's Liquefied Natural Gas Ltd., signed a heads of agreement with Vessel Gasification Solutions Inc. (VGS) in relation to the Magnolia LNG Project in Lake Charles, LA, for the provision of up to 4 million tonnes per annum of liquefied natural gas (LNG). The nonbinding agreement provides for a 20-year free on board (FOB) sale and purchase agreement. VGS is developing a floating LNG import and regasification terminal at the Kakinada Deepwater Port in Andhra Pradesh, India. The Krishna Godavari LNG Import Terminal is expected to be India's first LNG import project to become operational on the country's east coast. When operational, the import terminal is expected to allow for the full utilization of about 7,000 MW of near-idled power plants. The availability of power is expected to fuel an industrial renaissance in the coastal region of Andhra Pradesh and Orissa. "With the execution of this agreement, VGS is now in a prime position to execute on the first-mover advantage we have established on India's east coast," said VGS President Gaurav Tiwari. From Jan. 1 through October of last year there were four cargoes of LNG shipped from the Lower 48 to India, all from Cheniere Energy's Sabine Pass terminal in Louisiana, according to the U.S. Department of Energy.