Magnolia LNG, Perth-based LNG Limited’s U.S. unit, signed a heads of agreement with Vessel Gasification Solutions for a 20-year supply of 4 mtpa of liquefied natural gas from its project in Lake Charles, Louisiana.
According to the company’s statement, the non-binding HoA provides for free-on-board deliveries to the proposed Krishna Godavari LNG import terminal.
The firm SPA is conditional upon the financial close of the KG LNG terminal and satisfaction by VGS of defined credit requirements underpinning their LNG purchases within agreed timeframes.
Gaurav Tiwari, president of VGS added that the deal with Magnolia LNG would bring a “significant tranche of U.S.-produced LNG” to a new market on India’s East coast.
The terminal being developed by VGS is located offshore at Kakinada Deepwater port in Andhra Pradesh, India. The facility aims to supply regasified natural gas to power plants with the capacity of 7000 MW as well as industrial users.
The proposed Magnolia LNG facility would have up to four trains each with a liquefaction capacity of 2 mtpa or more, two 160,000-cbm storage tanks, ship, barge and truck loading facilities and supporting infrastructure.