Liquefied Natural Gas Ltd (LNG Ltd) has announced that its wholly owned subsidiary, Magnolia LNG LLC, has agreed with KSJV to extend the validity period of the signed engineering, procurement, and construction (EPC) contract price through 31 December 2016. KSJV is a KBR - SKE&C joint venture lead by KBR.
Magnolia LNG and KSJV previously signed a binding lump sum turnkey (LSTK) EPC contract with a cost of US$4.354 billion for four LNG trains and associated facilities. The original agreement maintained the validity of the LSTK EPC contract price through 30 April 2016. This extension agreement guarantees the LSTK price for an additional period of eight months.
LNG Ltd Managing Director and Chief Executive Officer, Greg Vesey, said: "We are working closely with key contractors and suppliers, such as KSJV, to maintain momentum on the Magnolia LNG project as we continue our marketing efforts. Extension of the lump sum turnkey contract price validity along with the recently received FERC Order helps maintain Magnolia's standing as the low cost, low risk, construction ready Gulf Coast LNG export project.
"We look forward to the US Department of Energy (DOE) processing Magnolia LNG's pending application to export LNG to countries that do not have a free trade agreement (FTA) with the United States following receipt from the FERC of the final notice to proceed."
Magnolia LNG plans to construct and operate up to four liquefaction production trains, each with a capacity of 2 million tpy or greater, using LNG Ltd’s patented OSMR® LNG process technology. Construction and operation shall include 2 x 160 000m3 full containment storage tanks, ship, barge and truck loading facilities, and supporting infrastructure.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26042016/magnolia-lng-and-ksjv-extend-agreement-2352/