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Magnolia LNG inks TS Agreement with SKEC Group

Published by , Senior Editor
LNG Industry,


Liquefied Natural Gas Company Ltd’s (LNG Ltd) 100% owned subsidiary, Magnolia LNG LLC, has executed a technical services agreement (TS Agreement) with SK E&C USA Inc. 

SK E&C USA Inc. is a wholly owned subsidiary of SK Engineering and Construction Co. Ltd (SKEC Group).

The agreement concerns the ongoing engineering, procurement and construction (EPC) activities for the 8 million tpa Magnolia LNG project in Lake Charles, Louisiana, USA.

As part of the TS Agreement, SKEC Group will, amongst other things:

  • Continue to review all the pre-front end engineering design (FEED) information and data included in the preliminary Resource Reports submitted to the Federal Energy Regulatory Commission (FERC).
  • Assist Magnolia LNG with the final Resource Reports as part of Magnolia LNG’s filing application to FERC. The targeted submission date is by the end of April 2014.
  • Completed the FEED for the LNG project including:
    • Gas pretreatment facilities.
    • Four LNG trains (each with a nominal LNG production capacity of 2 million tpa).
    • Two 160 000 m3 full containment LNG storage tanks.
    • Jetty and ship loader facilities.
    • All related infrastructure and services.
  • Estimate a detailed lump sum turn-key cost (LSTK) on an open book basis by 28 November 2014; agree with Magnolia LNG a detailed LSTK EPC contract ‘term sheet’ (with a targeted completion date of 30 June 2014); and agree a binding LSTK contract based on the term sheet.

SKEC Group has already provided LNG Ltd with an initial estimated EPC cost of US$ 1.57 billion, which was consistent with the company’s budget estimate.

Adapted from press release by

Read the article online at: https://www.lngindustry.com/liquefaction/14042014/magnolia_lng_inks_ts_agreement_with_skec_group_425/

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