Magnolia LNG (MLNG), a subsidiary of LNG Limited, has signed an EPC Contract Term Sheet with SK E&C USA in relation to the first phase of the Magnolia LNG Project.
Magnolia LNG Project
The Magnolia LNG Project comprises the development of an 8 million tpa LNG export project near Lake Charles, Louisiana. The project will be developed in two phases, with the initial phase comprising two LNG trains, each of 2 million tpa LNG design capacity, two 160,000 m3 storage tanks, jetty and ship loading facility and related infrastructure.
The EPC contract details the generally agreed position of SK E&C and MLNG in relation to over 45 key commercial provisions to be further developed and included in a Lump Sum Turn Key (LSTK) EPC Contract. BNP Paribas, MLNG's project finance adviser and Merlin Advisors LLC, the lenders' technical consultant, contributed to the establishment of the EPC Term Sheet to assist in ensuring bankability of the provisions.
MLNG's Chief Operating Officer, John Baguley, commented: "LSTK EPC Contracts are very detailed and comprehensive contracts and their negotiation can be extremely protracted. The EPC Term Sheet will materially assist in the early drafting of the LSTK EPC Contract and pave the way for a much shorter negotiation and completion period.
"SK E&C is continuing to progress the FEED and build-up of the LSTK EPC Contract price under a separate Technical Service Agreement signed in April 2014, and at this stage the program is on schedule and within budget".
The company also announced that Greg Pilkinton will join the MLNG team, as EPC Contracts Manager on 14 July 2014. This will shortly be followed by the appointment of an EPC Planning Director; VP Engineering and Construction, and SVP Facilities Operations.
Baguley added: "These additional personnel will round out MLNG's core engineering, construction and operations team, to enable us to keep pace with the SK E&C work outflow and maintain adherence to the current target to achieve a Financial Close in mid-2015."
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11072014/mlng_signs_epc_contract_with_sk_eandc_960/