By Stephen Bell
SYDNEY--Australia's Liquefied Natural Gas Ltd. (LNG.AU) said it
has signed a second customer for its proposed Magnolia gas
processing venture in the U.S. after agreeing a sales deal with
Spain's Gas Natural SDG SA (GAS.MC).
The initial agreement involves Gas Natural sourcing natural gas
from shale fields that can be processed at Liquefied Natural Gas
Ltd's plant in Louisiana state. Gas Natural will then have the
right to take up to 2 million metric tons of liquefied natural gas
each year to sell to users.
According to the deal terms, Gas Natural will pay LNG Ltd. a
monthly capacity fee, and fund some of the operating and
maintenance costs.
Liquefied Natural Gas Ltd. aims to use its own liquefaction
technology for Magnolia. The plant's first phase will cost around
US$2.2 billion and produce around 4 million tons a year 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 U.S.
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, Liquefied Natural Gas Ltd. signed a similar deal
over Magnolia with a unit of Gunvor Group, a commodities
trader.
-Write to Stephen Bell at djnews@dowjones.com
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