Australian firm LNG (LNGL) plans to sell the 8mn t/yr Magnolia LNG project in Louisiana for $2.25mn to a firm called Global Energy Megatrend, with the transaction to be completed by 15 May.

The proposed transaction by LNGL comes after the firm was placed into administration, as a sharp fall in global oil prices forced energy firms to shelve oil and gas projects and increased pressure on firms with no income and low levels of funding.

There are no details on Global Energy Megatrend, which was registered as a company in London just late last year.

The Magnolia LNG project was LNGL's key project, and the firm never reached a final investment decision (FID) on the venture as it was unable to get at least 6mn t/yr of Magnolia's capacity to be tied to long-term supply agreements.

The sale of Magnolia LNG does not include the firm's interest in the business and assets of the 8mn t/yr Bear Head LNG project in the eastern Canadian province of Nova Scotia. Bear Head is also undeveloped and has no binding agreements for the sale of LNG.