Meridian and LNGL hope to finalise a 20-year liquefaction tolling agreement for up to two million tonnes per annum with LNGL's Magnolia LNG project in the coming weeks.

The agreement will cover the first of LNGL's four trains, to be built in Louisiana, and will reduce LNGL's commercial risks.

Under the proposed tolling agreement Meridian LNG will be responsible for delivery of gas to Magnolia for liquefaction, plant usage, storage and delivery onto LNG ships arranged by Meridian.

Magnolia will be paid a monthly capacity fee over the 20‐year tolling term.

Meridian LNG, together with its operating partner Hoegh LNG, will deliver LNG from Magnolia to the Port Meridian LNG import terminal in the UK, as well as other potential destinations compatible with Hoegh's floating storage and regasification vessels.

Meridian LNG will deliver re‐gasified LNG to E.ON for sale into the UK national transmission system.

"We congratulate Meridian LNG on the signing of its gas sales agreement with E.ON and look forward to concluding negotiations and execution of the Meridian tolling agreement," Magnolia chief commercial officer Rick Cape said.

"We are also pleased with the progress being made on additional tolling agreements, and LNG sales and purchase agreements and are confident we will close out the full 8MMtpa of Magnolia LNG production capacity."

The Meridian deal, LNGL's third, was first announced in November 2013 for the initial 20 years plus a five year option.

LNGL anticipates it will receive final US federal and state permitting this year, with commencement of construction to begin by the end of the year for a mid-2018 deadline.

About 50% of the construction cost is being funded by Stonepeak Infrastructure Partners under definitive financing agreements.

The project has already received approval from the US Department of Energy (DOE) to export 4MMtpa of LNG to countries which have a free-trade agreement with the US. LNGL has applied to increase this to 8MMtpa, as well as approval to export 8MMtpa of LNG to countries which don't have a trade agreement with the US.

LNGL, which is now one of the most successful companies on the ASX, had shares unchanged at $4.15 in early trade this morning.