Liquefied Natural Gas selects KBR Magnolia LNG Project in Louisiana, US

Liquefied Natural Gas selects KBR for Magnolia LNG Project in Louisiana, US

11:32 AM, 6th January 2015
Liquefied Natural Gas selects KBR for Magnolia LNG Project in Louisiana, US

LOUISIANA, US: Liquefied Natural Gas Limited has signed a technical services agreement with global LNG engineering, procurement and construction contractor KBR Inc for its Magnolia LNG Project in Louisiana, US. It is proposed that KBR and South Korea’s SK Engineering and Construction Group will form an integrated EPC joint venture to deliver the 8 million tonne per annum Magnolia LNG project. An updated EPC contract has been initialled with SKEC and Magnolia LNG remains on schedule for financial close in mid-2015 and first LNG in the fourth quarter of 2018. Total capital costs are estimated at $3.5 billion, or $440 per tonne, for the 8 metric tonne per annum project while cost for the initial 4 metric tonne per annum project is estimated at $1.986 billion.

“KBR is a well credentialed LNG EPC contractor and will provide the Project Director and access to the full global resources of the KBR group. This will be particular relevant as Magnolia LNG moves to commit to the full 8 metric tonne per annum,” said John Baguley, Chief Operating Officer, Magnolia LNG.

“Our MLNG team recognizes the excellence delivered by the SKEC organization to date. With the project now further advancing towards EPC, we are pleased to have KBR’s additional experience and resources available as we finalize the EPC Contract and project related activities towards our planned financial close in mid?2015. The period from now through to 31st March 2015, during which we will merge the Provisional Sum elements into the combined lump sum, fixed price contract, will position Magnolia LNG to rapidly enter into the construction phase as necessary approvals and licenses are received,” added Baguley.

“This period will also enable us to incorporate any comments received from FERC during their preparation of the Draft Environmental Impact Statement, and to undertake the necessary rigorous planning and scheduling required to support achieving first LNG in 2018. The original SKEC project schedule and budget covering the period through to 30th June 2015 remain on target,” said Baguley.


© Proactive Investor UK News 



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