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LNG Limited secures $1.5 billion for Magnolia LNG project

Liquefied Natural Gas Limited said it has agreed on an amended and restated Magnolia LNG equity agreement with Stonepeak Partners securing a $1.5 billion commitment. 

Additionally, the two companies have updated the associated Magnolia LLC agreement, replacing the existing Stonepeak agreements signed in October 2013 in their entirety.

The commitment is expected to fund the full Magnolia LNG project equity requirement, LNG Limited said in a statement.

Stonepeak Co-founder and senior managing director, Trent Vichie, said the company believes Magnolia LNG is among the “best positioned projects for the next wave of US LNG exports.” 

The ECA governs the relationship, cooperation, rights, and obligations between Stonepeak and LNGL through financial close of Magnolia. The LLC agreement sets out the respective rights and obligations of Stonepeak and LNGL relating to Magnolia from financial close, including the governance, construction, operation, allocation of profits, distribution of postdebt service cash flows, and other related matters.

The amended and restated agreement represents the definitive documentation under which investment funds managed by Stonepeak will acquire preferred interest in the Magnolia LNG project.

LNG Limited said the proceeds will be used to fund the full expected US dollar equivalent equity requirement to construct and place into service the 8 mtpa Magnolia LNG project located in Lake Charles, Louisiana, USA.

Stonepeak’s investment is scheduled to close following a positive FID on Magnolia by LNGL.

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