LNGL awards extension for $4.354bn Magnolia LNG contract in US

Australia-based Liquefied Natural Gas (LNGL) has granted an extension to the KSJV joint venture between KBR and SKE&C for the $4.354bn engineering, procurement, and construction (EPC) contract for its US-based subsidiary Magnolia LNG.

Magnolia LNG is engaged in the development of an 8mtpa or greater LNG export terminal in Lake Charles, Louisiana, adjacent to the Calcasieu Ship Channel.

With the extension, KSJV will continue providing services through 30 June next year.

LNGL managing director and CEO Greg Vesey said: “Our EPC contract with KSJV is an important component of the overall de-risked position of the project.”

The initial agreement in connection with the contract with KSJV was signed on 16 November 2015.

KBR president and CEO Stuart Bradie said: “We welcome the opportunity to continue applying our experience with major, complex projects to achieve successful completion of this innovative midscale LNG facility.”

According to the development plan, Magnolia LNG will construct and operate up to four liquefaction production trains.

Wsing the company’s patented OSMR LNG process technology, each of the trains is expected to have a capacity of 2mtpa or more.

The project comprises construction and operation of two 160,000m³ full containment storage tanks, as well as ship, barge and truck loading facilities, and associated infrastructure.

Under the EPC contract, KSJV is responsible for creating systems to enable full guaranteed production operations.

The final investment decision on the project and commencement of construction are subject to execution of sufficient offtake agreements to support financing.