Liquefied Natural Gas Ltd. (LNGL), Sydney, now in administration, has entered a binding sale transaction of its proposed Magnolia LNG project to Global Energy Megatrend Ltd. (GEM), London, for $2.25 million.
The Magnolia LNG proposal is for an LNG export terminal at Port of Lake Charles, La. which is to have up to four LNG trains each with a production capacity of 2.2 million tonnes/year (tpy).
The transaction is for the sale of LNG Ltd.’s subsidiaries that own and operate the project, including Pecan Inc., LNG Management Services LLC, and LNG Technology LLC.
The sale, being made through LNGL’s administrators PricewaterhouseCoopers, transfers liabilities of the project to the acquirer.
The transaction does not include LNGL’s interest in the business and assets of the proposed 8 million tpy Bear Head LNG Project in Nova Scotia, Canada.
While LNGL’s patented optimized single mixed refrigerant liquefaction process technology is to be sold as part of the deal, the Bear Head project will retain a perpetual license to use the technology.
LNGL went into voluntary administration following the April withdrawal of a takeover offer from LNG9 PTE Ltd., Singapore (OGJ Online, Apr. 14, 2020). LNGL said at the time that that the period of exclusivity for LNG9’s offer had lapsed, and the company was working with other parties on strategic alternatives that supplement cash on hand to improve LNGL’s working capital position and sustain its operations.
Just prior to calling in the administrators, LNGL said that its existing cash reserves were sufficient to meet its commitments until May 2020, but it had to secure additional funding to continue operating beyond that date.
Completion date is expected on or before May 15.
