LNGL’s unit agrees with KSJV for extension of EPC contract
Liquefied Natural Gas' (LNGL) fully owned unit Magnolia LNG (MLNG) has agreed with KSJV to extend the validity period of the engineering, procurement, and construction (EPC) contract through to 30 June this year.
It was announced on 26 April 2016 that Magnolia and KSJV had extended its actual binding lump sum turnkey (LSTK) EPC contract for four LNG trains and related facilities until 31 December 2016, with a subsequent interim extension to 31 January this year.
KSJV is a KBR–SKE&C joint venture lead by KBR.
This present extension agreement has validity for an additional six months, from January to 30 June.
LNGL managing director and chief executive officer Greg Vesey said: “We continue to work closely with key contractors and suppliers such as KSJV to maintain momentum on the Magnolia LNG project as we continue our marketing efforts.
“This further extension of our LSTK EPC Contract with KBR-SK E&C, together with our FERC Final Order and Department of Energy non-FTA export approval, further cements Magnolia LNG as construction-ready and the next US LNG export project that will move forward into construction and operation.”
Magnolia LNG intends to construct and operate up to four liquefaction production trains, with each holding a capacity of 2mtpa or more, as well as use LNGL’s patented OSMR LNG process technology.
Construction and operation include two 160,000m³ full containment storage tanks, ship, barge, and truck loading facilities, and supporting infrastructure.
The LSTK EPC contract comprises all aspects of the project required to bring the facility into full production.
Magnolia LNG has secured its FERC order in addition to FTA and non-FTA approval.
The final investment decision and initiation of development are expected only after the execution of offtake agreements to support financing.
LNGL is an ASX listed company, with a portfolio consisting of 100% ownership in Magnolia LNG, Bear Head LNG Corporation, Bear Paw Pipeline Corporation, Gladstone LNG and LNG Technology.