LNG Limited readies EPCC for Magnolia project

THE ROADHOUSE BOWSER: Liquefied Natural Gas Limited (ASX: LNG) announced its wholly-owned subsidiary, Magnolia LNG (MLNG) has completed two important steps in preparation for the engineering, procurement, construction and commissioning (EPCC) phase of the Magnolia LNG project to be located in Lake Charles, Louisiana, USA.

In January MLNG initialled off on the EPCC contract with SKE&C Group.

Kellogg Brown & Root LLC (KBR) then joined the Magnolia LNG project party as lead partner in an integrated Joint Venture with SKE&C (together, the KBR‐SK JV or KSJV).

MLNG and KSJV have now agreed to terms and jointly initialled off on the updated EPCC contract including terms and conditions, full scope of work and all supporting contract schedules and attachments.

In addition, MLNG has completed a tender process and has selected Clough‐CH∙IV to fulfil the roll of owners engineer for the EPC phase of the project.

This will include providing technical and project execution support personnel to MLNG as oversight to the KSJV contractor activities as the project moves through detailed design, construction, commissioning and start‐up in support of delivering LNG from the first of the four planned two million tonnes per annum LNG trains by the end of 2018.

“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,” MLNG chief operating officer John Baguley said in the company’s announcement to the Australian Securities Exchange.

“Our execution plans and activities are established on this basis and also optimized to enable the sequential completion of the full four train, eight million tonnes per annum 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 authorizations.

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

Email: LNG@LNGLimited.com.au

Website: www.LNGLimited.com.au