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Magnolia LNG moves towards EPCC phase

LNG Industry,

Liquefied Natural Gas Ltd’s (LNG Ltd) subsidiary, Magnolia LNG, has taken two major steps towards preparing for the engineering, procurement, construction and commissioning (EPCC) phase of the Magnolia LNG Project, in Lake Charles, Louisiana, US.

EPCC contract

In January 2015, MLNG finalised the EPCC contract with SK E&C Group. Kellogg Brown & Root (KBR) joined the project as the lead partner in a joint venture with SK E&C (KSJV). MLNG and KSJV have now agreed to terms and jointly initialled off the updated EPCC contract, including full scope of work and all supporing contract schedules.

MLNG has also completed a tender process and has selected Clough-CH-IV to act as owners engineer for the EPC phase of the project. This will include providing technical and project execution support personnel to MLNG, as the project moves to start-up in support of delivering LNG from the first 2 million tpy train by the end of 2018.


Commenting on the progress, John Baguley, MLNG COO, said: “The alignment of the project activities and planning with the regulatory process is critical to advancing the project at a pace to meet our commitments to deliver LNG to our customers by the end of 2018.

“Our execution plans and activities are established on this basis and also optimised to enable the sequential completion of the full four 8 million tpy MLNG facility.

“The agreement with KSJV on the contract terms and conditions marks an important step, in that it forms the basis for the final lump sum turnkey pricing reflecting current market conditions, and timed to initiate site works consistent with the availability of the necessary permits and authorisations.

“This also allows the project to initiate an early works program to de-risk the project schedule and maximise the use of the time available until our actual site works can begin,” Baguley concluded.

Adapted from press release by Katie Woodward

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