SYDNEY: Liquefied Natural Gas Limited has extended the validity period of its current binding engineering, procurement, and construction (EPC) contract with KSJV (a KBR – SKE&C joint venture led by KBR) for its 100% owned subsidiary, Magnolia LNG LLC.
The binding lump sum turnkey (LSTK) EPC US$4.623 billion contract providing an installed EPC cost/tonne of US$525 is now valid through June 30, 2020. The agreement incorporates the 0.8 million tonnes per annum (mtpa) capacity uplift for Magnolia, which has received a draft Supplemental Environmental Impact Statement (SEIS) from the Federal Energy Regulatory Commission (FERC), for a total installed capacity of 8.8 mtpa.
FERC is expected to complete its regulatory review of Magnolia’s capacity uplift early next year.
Magnolia proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2.2 mtpa or greater using the Company’s patented OSMR LNG process technology.
Construction and operation includes two 160,000 m3 full containment storage tanks, ship, barge, and truck loading facilities, and supporting infrastructure. The lump sum, turnkey (LSTK) EPC contract includes all elements of the project necessary to bring the facility into full guaranteed production operations.
Magnolia LNG is fully permitted, having received its FERC Order and both FTA and non-FTA approval from the DOE. Final investment decision and initiation of construction are expected upon execution of sufficient offtake agreements to support financing.