LNG in Global Alliance With Chart Industries

Liquefied Natural Gas Limited is entering into a supplier alliance agreement (SAA) with Chart Industries, Inc. (Chart) through Chart’s wholly owned subsidiary, Chart Energy & Chemicals, Inc. The SAA provides for the design and manufacture of brazed aluminium heat exchangers (BAHX) and LNG liquefaction cold boxes used in the OSMR LNG liquefaction design. The global alliance agreement will call for Chart and LNGL to work collaboratively together on both current and future Company projects.

Negotiations between LNGL and other key equipment and service providers continue as the Company progresses its strategy to institute and maintain a high degree of standardization and commonality across the Company’s global OSMR® LNG liquefaction facilities.

Associated with execution of the Chart SAA, Magnolia LNG is releasing a purchase order (PO) for the liquefaction equipment including cold boxes, brazed aluminium heat exchangers, and Core‐in‐Kettle exchangers for Magnolia LNG’s four‐train LNG facility project in Lake Charles,Louisiana, USA. The PO, released as part of an Early Works engineering procurement and construction (EPC) program, will subsequently be novated to the EPC contractor for delivery as
part of the full lump sum turnkey EPC project.

John Baguley, Magnolia LNG’s Chief Operating Officer, stated, “We are particularly pleased to be joining an alliance with Chart, one of the world’s leading suppliers of cryogenic liquefaction equipment.  This equipment is vital to our mission to deliver LNG to market by the end of 2018.
 
With Chart on board, we will be working closely with them and our EPC contractor to establish an overall asset management program to jointly address the successful design, fabrication, installation, commissioning and operation of the Chart equipment within our overall facility.”

Sam Thomas, Chairman, Chief Executive Officer and President of Chart Industries commented, "We are excited to partner with LNG Limited to supply key equipment components for the OSMR  liquefaction technology across all their projects, again demonstrating Chart BAHX as the highly efficient, low risk technology platform for LNG.  We look forward to providing our track record of safety, quality and experience as a leader in our sector.”

LNGL Managing Director / CEO and President of Magnolia LNG, Maurice Brand, stressed the importance of the Chart global alliance.  “The use of alliance agreements with key suppliers such as Chart is central to our efforts to produce a standardized, repeatable design that we are able to replicate across all our projects and opportunities,” said Brand. “Our strategy is to establish and demonstrate the clear advantages of our OSMR technology and modular construction approach on Magnolia LNG, and then apply this to our subsequent projects such as Bear Head LNG in Nova Scotia, Canada.”