Liquefied Natural Gas Limited has announced that its wholly owned subsidiary, Magnolia LNG, LLC is in the process of agreeing with KSJV to extend the validity period of the current binding engineering, procurement, and construction contract.
Both LNGL and KSJV are committed to continuing their Magnolia LNG relationship through a further extension of the binding lump sum turnkey EPC contract.
The companies were targeting completion of this extension by 31 December 2016, but considering the strong likelihood of third party information delays during the holiday season, have agreed to an interim extension to the EPC contract through 31 January 2017 as a bridging step to agreement on a longer term extension.
As previously announced on 16 November 2015, Magnolia and KSJV signed a LSTK EPC contract with a cost of US$4.354 billion for four LNG trains (a total of 8 mtpa or greater) and associated facilities. The original agreement maintained the validity of the LSTK EPC contract price through 30 April 2016. An extension agreement was subsequently announced on 26 April 2016 guaranteeing the LSTK price for an additional eight-month period through 31 December 2016.
LNGL Managing Director and Chief Executive Officer, Greg Vesey stated, “We are pleased to continue to be working closely with KBR-SK E&C as well as other key contractors and suppliers to maintain momentum on the Magnolia LNG project as we finalise LNG offtake agreement efforts. Extension of the lump sum turnkey contract price validity along with the recent receipt of the US Department of Energy non-FTA export approval helps maintain Magnolia’s standing as the low cost, low risk, construction ready Gulf Coast LNG export project.”
Read the article online at: https://www.lngindustry.com/liquefaction/03012017/magnolia-lng-epc-contract-status-update/