Magnolia LNG Project Moves Ahead

Liquefied Natural Gas Limited informed that its wholly owned subsidiary, Magnolia LNG LLC (MLNG) has taken two significant steps in readiness for the engineering, procurement, construction and commissioning (EPCC) phase of the Magnolia LNG Project to be located in Lake Charles, Louisiana, USA.

In early January 2015, MLNG had initialled off on the EPCC contract with SK E&C Group. Kellogg Brown & Root LLC (KBR) then joined the Magnolia LNG project as the lead partner in an integrated joint venture with SK E&C (together, the KBR‐SK joint venture, or KSJV). MLNG and KSJV have now agreed to terms and jointly initialled off on the updated EPCC contract including terms and conditions, full scope of work and all supporting contract schedules and attachments.

Additionally, MLNG has completed a tender process and has selected Clough‐CH∙IV to fulfil the roll of owners engineer for the EPC phase of the project. This will include providing technical and project execution support personnel to MLNG as oversight to the KSJV contractor activities as the project moves through detailed design, construction, commissioning and start‐up in support of delivering LNG from the first of the four planned 2 mtpa LNG trains by the end of 2018.

“The alignment of the project activities and planning with the regulatory process is critical to advancing the project at a pace to meet our commitments to deliver LNG to our customers by the end of 2018,” said John Baguley, MLNG Chief Operating Officer. “Our execution plans and activities are established on this basis and also optimized to enable the sequential completion of the full four train, eight mtpa MLNG facility. The agreement with KSJV on the contract terms and conditions marks an important step, in that it forms the basis for the final lump sum turnkey pricing reflecting current market conditions, and timed to initiate site works consistent with the availability of the necessary permits and authorizations. This also allows the project to initiate an early works program to de‐risk the project schedule and maximize the use of the time available until our actual site works can begin.”