LNGL Forms Alliances with Siemens, EthosEnergy

Liquefied Natural Gas Limited (LNGL) announced that it is entering into two additional key supplier alliance agreements (SAA) with Siemens Energy Inc. (Siemens) and EthosEnergy Group (EthosEnergy), 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, La. 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.”
 

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. 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.”