LNG Inks Global Alliance Pact with Siemens, EthosEnergy

Liquefied Natural Gas Limited  is entering into two additional  key  supplier  alliance  agreements  (SAA)  with  Siemens  Energy  Inc.   and EthosEnergy  Group, respectively.  These  agreements  call  for  LNGL  to  work collaboratively with both Siemens and EthosEnergy on current and future Company projects.  The use of global alliance agreements with key suppliers is central to LNGL’s strategy to produce standardized, repeatable designs and processes across all its projects and operations.

Siemens will provide the Magnolia LNG (MLNG) project in Lake Charles, Louisiana, USA with the main OSMR process compression equipment and drivers for the full four train, eight‐mtpa LNG project.  This equipment includes the main mixed refrigerant compressors and their gas turbine drivers, the ammonia refrigerant compressors with their steam turbine drivers, and the motor driven process gas booster compressors.  Altogether, a total of 20 process compressors plus their associated drivers are covered under the purchase agreement reached with MLNG.

Maurice  Brand,  LNGL  Managing  Director  and  CEO,  advised,  “The  alliance  agreement  with Siemens  represents  the  second  major  step  in  our  program  to  achieve  a  high  degree  of commonality across our global OSMR liquefaction facilities.  Together with the earlier alliance agreement reached with Chart Industries for the cold boxes, we have now standardized the heart of the liquefaction process.  This in turn enables LNGL to further de‐risk the delivery of our strategy to become the low cost leader in the LNG industry through replication of our simple and reliable, highly efficient innovative mid‐scale technology and project execution methods.”

“We are pleased that LNGL has awarded us with the supply of the main compression equipment and drivers for the Magnolia LNG project”, said Lisa Davis, Member of the Managing Board of Siemens AG. “LNGL’s modular construction approach represents a very strong platform in a growing market. Our solution offers best‐in‐class emissions performance, space saving design and lower expected lifecycle costs.”

Separately,  MLNG  selected  EthosEnergy  to  provide  long‐term  operations  and  maintenance services for the production phase of the MLNG project.  The selection of EthosEnergy, a venture between  Wood  Group  and  Siemens,  provides  for  proper  planning,  development  and implementation of operating procedures as MLNG moves from construction into LNG production.  These operating procedures will evolve into the standard deployed across all LNGL operating assets. 

“The operations and maintenance agreement with EthosEnergy is an important step in our program to transition Magnolia from our current activities focused on permitting and design, into the subsequent construction, commissioning and LNG production phases,” reported MLNG Chief Operating Officer, John Baguley.  “We are committed to establishing the tools, processes, and procedures that enable MLNG to achieve the highest levels of excellence in plant reliability and safety.  We look forward to integrating EthosEnergy into our team as a cornerstone element in achieving  this  necessary  excellence.  The  established  relationship  between  Siemens  and EthosEnergy  represents  an  added  benefit  to  this  arrangement  now  that  we  have  selected Siemens to provide our process compressor equipment.”