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EPC contractor finalised for Magnolia LNG

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LNG Industry,

Magnolia LNG LLC has announced that it is set for finalisation of the Engineering, Procurement and Construction (EPC) Joint Venture Agreement (JVA) between the selected Magnolia LNG joint venture contractor parties in support of continued advancement of the Magnolia LNG project.

Magnolia LNG is a wholly owned subsidiary of Liquefied Natural Gas Ltd (LNG Ltd).

KBR and SK E&C USA, who will deliver the EPC phase of the Magnolia LNG project, have completed the execution of the formal JVA as per the previously announced schedule. The executed JVA calls for KBR to provide the Project Director for the Joint Venture, while SK E&C USA will provide the Deputy Project Director, with a 70% - 30% KBR-SK ownership structure in the JV as originally planned.

A three-member Executive Committee (one member from SK and two from KBR) will be formed to provide oversight to the EPC execution team under the management of the Project Directors. The project task force team will be located in the KBR Tower in downtown Houston, Texas, US, where project activities under the current Technical Services Agreements leading to the EPC Contract are underway.

LNG Ltd’s Managing Director and Chief Executive Officer, Maurice Brand, said: "This signing of the Joint Venture Agreement formalises the EPC Contractor arrangement for Magnolia LNG that was established under the MOU originally signed between [Magnolia LNG], KBR and SK E&C USA in December 2014. The JVA encompasses the full four-train, 8 million tpy planned capacity of the [Magnolia LNG] facility and supports our planned transition into the EPC project phase in 2015."

Adapted from press release by

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