Long before anyone heard of COVID-19, La., landowner, investor, and energy attorney Bill Blanchet had his eye on the proposed Magnolia LNG export terminal. As the project sat undeveloped on a swath of 115 acres adjacent to the Calcasieu Ship Channel in Lake Charles, Blanchet expressed his interest a few years ago to acquire Magnolia LNG from its parent, Australian firm LNG Limited.
Magnolia LNG LLC, a wholly owned subsidiary of LNGL, is developing an 8 mtpa or greater LNG export terminal in Lake Charles, Louisiana, USA. The project site is on 115 acres adjacent to the Calcasieu Ship Channel, an established shipping channel in the Lake Charles District, State of Louisiana.
But LNGL showed no interest in selling what it envisioned to be a four-train, midscale facility capable of producing 8 MTPA of LNG. After all, every component of the project had finally come together: full permitting and regulatory approvals granted, suppliers on board, pipeline agreements signed, buyers bagged, and a joint venture anointed with KBR to head up construction. Everything in place to make a hit record. As a bonus feature of the project, LNGL also had patented its own liquefaction technology that the company hoped to license in the future. Looked like all systems were go with the exception of a final investment decision.
Meanwhile, Blanchet, CEO of Global Energy Megatrend (GEM) and Louisiana Natural Gas Exports, continued to follow Magnolia’s progress—or more accurately, the lack there of. Rumblings that hard times had befallen LNG Limited soon followed. Then last month, LNGL announced that a $75 million deal with Singapore-based LNG9 PTE Ltd., to acquire all the company’s assets, including Magnolia, had collapsed amid the COVID-19 fallout. With little more than $8 million in its coffers to last through May, LNGL announced it faced certain bankruptcy.
Enter Blanchet and Global Energy Megatrend in the very merry month of May, which have now scooped up Magnolia LNG and its subsidiaries, LNG Management Services and LNG Technology, for $2.25 million. LNGL for now will retain its proposed Bear Head LNG project in Novia Scotia. We can’t wait to see what happens next.
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