LNG Ltd. (LNGL) said Tuesday it plans to sell its interest in a proposed liquefied natural gas (LNG) export project in Lake Charles, LA, to Global Energy Megatrend Ltd. for $2.25 million.

The announcement to sell stakes in proposed Magnolia LNG comes about a month after LNGL warned of a cash crunch because its lender ended funding and Singapore-based LNG9 Pte Ltd. withdrew an offer to acquire it.

The sale to Global Energy, expected to be completed by Friday (May 15), also includes LNGL’s patented optimized single mixed refrigerant (OSMR) liquefaction process technology. The deal does not include interest in the proposed Bear Head LNG project in Canada, which would produce up to 12 million metric tons/year (mmty) for export from Nova Scotia. LNGL is retaining the project and a perpetual licence to use the OSMR technology at Bear Head.

With locations in Louisiana and London, Global Energy was formed to acquire and participate in U.S. upstream, midstream and downstream projects, including liquefaction and exports.

After the deal with LNG9 fell through, LNGL said it had enough cash in reserve to meet its obligations until the end of May. The company has had difficulty securing binding offtake agreements for its projects in a global gas market that’s flooded with cheap supplies. The pandemic has made matters worse as it has limited companies’ ability to negotiate agreements and curbed energy demand.

Earlier this month, LNGL hired PricewaterhouseCoopers to review its assets. Four directors have also resigned as well as the secretary.

Magnolia, planned for a 115-acre site near the Calcasieu Ship Channel, was approved by the Federal Energy Regulatory Commission in 2016. The project would include four LNG production trains with the capability to produce 2 mmty each.

LNGL signed a binding agreement with Meridian LNG Holding Corp for firm capacity rights of up to 2 mmty in 2015. That deal was extended the next year. However, Magnolia has continued to negotiate other deals with potential customers for terms of 20 years.