Meridian LNG Holdings Corp. (Meridian LNG) and E.ON Global Commodities SE (EGC), the trading unit of E.ON SE, have entered into a 20-year gas sales agreement under which EGC has agreed to purchase up to two million tons of regasified LNG per year (2.0 mtpa) from Meridian LNG at market-reflective conditions to be delivered at UK’s National Balancing Point. Meridian LNG intends to deliver such LNG through its planned Port Meridian import and regasification terminal.
Under the terms of the gas sales agreement, EGC will also have the opportunity to purchase incremental volumes should they be made available, of up to 750 million standard cubic feet a day, the estimated maximum daily throughput of the Port Meridian terminal.
Meridian LNG has previously signed a 20-year, 2.0 mtpa liquefaction term sheet with Magnolia LNG LLC (Magnolia LNG), the owners of the proposed Magnolia LNG facility in Lake Charles, LA, and anticipates entering into a binding liquefaction tolling capacity agreement shortly. The tolling agreement together with related supply and pipeline agreements is expected to provide 2.0 mtpa of LNG to Meridian LNG from early 2019. Magnolia LNG is a wholly owned subsidiary of Liquefied Natural Gas Limited (ASX: LNG), based in Perth, Western Australia.
Christopher Delbrück, CEO of EGC SE, said: “This contract is an important step forward for our gas business. It builds on our already diverse supply portfolio and provides further momentum for the business. As gas markets in North America, Europe and Asia become increasingly interconnected, LNG is becoming a critical enabler for the optimization of E.ON’s asset base.”
“This gas sale agreement with EGC is a very significant step forward for Meridian LNG. The offtake agreement is a critical requirement for the launch of our Port Meridian UK regasification terminal, which when combined with our Joint Development Agreement with shipping and regasification partner H?egh LNG, and the anticipated supply from Magnolia LNG, completes a unique, low-cost and flexible LNG supply chain into Europe,” said Meridian LNG President and CEO, Roger Whelan.
