By STEPHEN BELL
SYDNEY -- Liquefied Natural
Gas Ltd. said it has signed a second customer for its
proposed Magnolia gas
processing venture in the United States after agreeing
to a sales deal with Gas Natural.
The initial agreement involves Gas Natural sourcing natural
gas from shale fields that can be processed at LNG's plant
in Louisiana state. Gas Natural will then have the right to
take up to 2 million metric tons of LNG each year to sell to
According to the deal terms, Gas Natural will pay LNG
a monthly capacity fee, and fund some of the operating and maintenance costs.
Gas aims to use its own liquefaction technology for Magnolia. The plant's
first phase will cost around $2.2 billion and produce around 4
MMtpy of LNG.
The plant would be built near LNG shipping channels in the
Lake Charles District of Louisiana.
The deal increases Gas Natural's exposure to the emerging
United States gas export sector, as the Spanish energy group is
one of the foundation customers for Cherniere Energy Partners'
Sabine Pass gas export project, also in Louisiana.
Last month, LNG
signed a similar deal over Magnolia with a unit of Gunvor
Group, a commodities trader.
Dow Jones Newswires