Privately held energy infrastructure developer Glenfarne Group, LLC said it has completed the acquisition of Magnolia LNG, an LNG export terminal development project in Louisiana
The acquisition was made through Glenfarne’s newly formed subsidiary Magnolia LNG Holdings.
New York-based Glenfarne was not the only suitor for Magnolia LNG. In an announcement on the Australian stock exchange in May, Liquefied Natural Gas (LNG) Ltd said it had terminated a sales agreement with Global Energy Megatrend Limited after the company failed to close the transaction within the agreed timeframe. LNG Ltd said it entered into a new transaction with Magnolia LNG Holdings for a cash price of US$2M. LNG Ltd is currently undergoing a corporate restructuring.
Sited on 115 acres on the Industrial Canal near Lake Charles Louisiana, Magnolia LNG is an 8 mta LNG export project that has completed the US Federal Energy Regulatory Commission (FERC) permitting process. Magnolia LNG will receive feed gas through the existing Kinder Morgan Louisiana Pipeline, and will pretreat, liquefy and store the LNG on site for domestic use and export. Glenfarne also acquired Magnolia LNG’s patented OSMR liquefaction technology.
“Magnolia LNG is a well-known and high-quality project to which Glenfarne brings its funding, marketing, development and construction expertise to take it to final investment decision, and then construct and operate the asset,” said Glenfarne founder and managing partner Brendan Duval. “We believe in the essential role that natural gas plays in the transition to a lower carbon world.”
Glenfarne has two operating subsidiaries: Alder Midstream which focuses on building, owning and operating midstream assets in the investment-grade Americas, and EnfraGen a developer, owner and operator of specialised power generation assets.
The acquisition of Magnolia LNG increases Glenfarne’s potential LNG export capacity to about 12 mta, 4 mta of which comes from Texas LNG Brownsville, an LNG export development project in Brownsville, Texas for which Alder Midstream is the majority owner and managing member.
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