Liquefied Natural Gas Limited announced that its wholly owned subsidiary, Magnolia LNG (MLNG), has executed a Tolling Agreement – Term Sheet with Brightshore Overseas Ltd, an affiliate of Gunvor Group.
The Agreement details key terms to be included in a legally binding tolling agreement, including:
The Company’s Managing Director, Mr Maurice Brand , said “this is a major step for the Magnolia LNG Project and demonstrates confidence in the technical and financial fundamentals of the project. The key commercial terms support the economics of proceeding on the basis of only one (2 mtpa) LNG train. However, it remains the Company’s objective to secure a further tolling party (or parties) to proceed with a second 2mtpa LNG train and, to this extent, the Company expects to enter into further Tolling Agreement Term Sheets or Heads of Agreement during 2013.” “In view of the substantial progress of the Magnolia LNG Project, the Company will issue a comprehensive update on the Magnolia LNG Project later this month” , added Mr Brand.