Magnolia LNG, an 8-million tonne/year export project planned for Lake Charles, La., has received a boost from an investment agreement with Stonepeak Partners LP, New York. The project has been advanced by Australia-based Liquefied Natural Gas Ltd.
In return for providing the entire project equity requirement of $660 million and based on the initial development plan of two LNG trains with total capacity of 4 million tpy of LNG, Stonepeak would hold about 50% of the MLNG project and LNGL will hold the remaining.
Estimated capital cost for the full development, said LNGL, remains at $2.2 billion. LNGL plans to finance the project based on 70% project debt financing and 30% project equity financing provided by Stonepeak. Exact ownership split between Stonepeak and LNGL will be determined at financial close, said the announcement earlier this month.
LNGL and Stonepeak now proceed to reaching definitive agreements within an agreed-on 60 days. As part of the agreement, Stonepeak will assist LNGL in securing long-term project debt financing of an estimated $1.54 billion.