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Magnolia LNG announces updated EPC contract with KBR-SKE&C

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LNG Industry,

LNG Limited has announced that its wholly owned subsidiary, Magnolia LNG LLC, has agreed to an updated, legally binding, lump sump turnkey (LSTK), fully wrapped engineering, procurement and construction (EPC) contract with the KBR-SKE&C joint venture (KSJV) in relation to the Magnolia LNG project.

According to the statement, this updated agreement reflects the entire scope of the original EPC contract amended for updated subcontractor pricing, costs associated with increasing Magnolia’s liquefaction capacity, and additional scope of work to be provided by KSJV that were previously the responsibility of LNG Limited. It follows the initial agreement that was signed with KSJV in November 2015.

LNG Limited claims that the updated agreement will remain valid until 31 December this year, and incorporates the 0.8 million tpy capacity increase for Magnolia, which is currently undergoing an approval process by the US Federal Energy Regulatory Commission (FERC), for an overall installed capacity of 8.8 million tpy.

LNGL Managing Director and Chief Executive Officer, Greg Vesey said, “The updated EPC Contract cost is US$4.623 billion based on 8.8 million tpy, providing an installed capacity EPC cost/tonne price of US$525. This agreement maintains the certainty of cost and capability with a world-class EPC provider. I wish to thank the LNGL, KBR and SKE&C teams for their efforts to complete this agreement and provide Magnolia with the most competitive, realistic, and transparent EPC contract in the industry.”

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