Liquefied Natural Gas Ltd. (LNGL) has finally closed on the sale of its proposed 8 million metric tons/year (mmty) export project in Lake Charles, LA, after two previous deals fell through.
New York City-based Glenfarne Group LLC confirmed Tuesday it has completed the $2 million deal through subsidiary Magnolia LNG Holdings LLC. LNGL is undertaking a corporate restructuring. PricewaterhouseCoopers, which was hired to review the assets, announced the transaction last month without providing more details on the holding company.
Magnolia, planned for a 115-acre site near the Calcasieu Ship Channel, was approved by FERC in 2016. The project would include four production trains, each able to produce 2 mmty. Glenfarne also acquired LNGL’s patented optimized single mixed refrigerant (OSMR) liquefaction technology.
“Magnolia LNG is a well known and high quality project to which Glenfarne brings its funding, marketing, development and construction expertise to take it to final investment decision, and then construct and operate the asset,” said Glenfarne founder Brendan Duval.
The acquisition boosts the amount of U.S. LNG export capacity Glenfarne has under development to 12 mmty. Alder Midstream LLC, another subsidiary, is the majority owner and managing member of Texas LNG Brownsville LLC. Texas LNG is a 4 mmty project that would be on the Brownsville Ship Channel on the tip of South Texas in Cameron County, TX. The Federal Energy Regulatory Commission authorized the project last year.
Glenfarne develops energy infrastructure in North America and Latin America. If Magnolia is ultimately sanctioned and moves ahead, LNGL would earn more under the terms of the deal.
LNGL’s sale does not include interest in the proposed Bear Head LNG project in Nova Scotia, which would produce for export up to 12 mmty. LNGL also has a perpetual licence to use the OSMR technology at Bear Head.
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