Magnolia LNG

Magnolia LNG is a proposed liquefied natural gas export terminal planned near Lake Charles. 

The Australian parent company behind the Magnolia LNG project near Lake Charles canceled a deal to sell the operation to a British business with a significant presence in Lafayette in late May. 

Global Energy Megatrend Ltd. was expected to pay $2.25 million to LNG Ltd. by May 15, but on May 25 the deal was terminated due to the buyer's "failure to close the transaction within the required timeframe."

One day later, Magnolia LNG Holdings LLC, a Delaware-based entity incorporated on May 7, stepped up and bought Magnolia LNG for $2 million. 

The new purchase agreement includes an unsecured noninterest bearing promissory note worth $1.3 million if the Magnolia LNG project raises enough capital to begin construction. 

The new buyer also agreed to work with LNG Ltd. on a potential recapitalization of the company expected to be completed on Nov. 30. The deal includes the permits, land, detailed engineering plans and a contract for development, in addition to the underlying technology related to the LNG project. 

Former proposed buyer Global Energy Megatrend had described itself as an integrated natural gas company that has been leasing U.S. natural gas fields and investing in pipelines that lead to Louisiana ports and LNG export terminals. Global Energy Megatrend co-founders include Lafayette businessmen Bill Miller of Miller Energy LLC, Ben Blanchet and Eddie Moses of Miller Thomson & Partners LLC. It also has co-founders in London.

Before that, LNG Ltd. had expected to be sold in a $75 million deal to Singapore-based LNG9 Ltd., but investors pulled out of that deal after a loan fell through.

LNG Ltd. recently appointed administrators who were tasked with dealing with a potential insolvency; the company was on track to run out of money in May. In Australia, where LNG Ltd. is headquartered, administration is akin to Chapter 11 bankruptcy reorganization in the United States.

Magnolia LNG was expected to export 8.8 million tons of LNG each year, but has not started construction. The project already has permits from the Federal Energy Regulatory Commission.

Magnolia LNG project sold for $2.25 million to British business with ties to Lafayette

Company behind Magnolia LNG appoints administrators, may be insolvent

Deal to acquire parent company of Magnolia LNG called off, project future uncertain

Bridge financing for parent company of Magnolia LNG fell through, project still moving forward

Acadiana Business Today: Magnolia LNG sale falls through to company with ties to Lafayette, new buyer steps up

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