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|Magnolia LNG Agrees EPC Contract with SK E&C|
|= Execution of EPC contract planned towards end-2014: US$2 billion for EPC work to build two trains =|
LNG Limited announced on December 1, 2014 that its subsidiary Magnolia LLC (MLNG) agreed to an EPC contract with SK E&C USA, a U.S.A.-based subsidiary of SK E&C, Korea regarding Magnolia LNG project. The capital cost for the initial contracted work totals US$1.986 billion for the installation of two trains (4 million tonnes per year of LNG in total).|
Execution of the EPC contract is planned for towards end-2014, subject to the approval of the parent company's board. Agreement of another EPC contract, US$1.014 billion in value, for additional two trains (4 million tonnes per year of LNG in total) is forecast by the end of March 2015. Overall cost for the construction is estimated US$3.5 billion.
In the initial contracted work, the first set of two trains, 2 million tpy each, two LNG storage tanks of 160,000 m3 each, capable of LNG storage of up to 8 million tpy, and a jetty together with ship loading facilities will be constructed, followed by completion of the second set of two trains.
Right now, Federal Environmental Regulatory Commission (FERC) is preparing the Draft Environmental Impact Statement, while Financial Close is planned in mid-2015. Once all necessary approvals and licenses are received construction work immediately commence for production start-up in the second half of 2018.
So far MLNG has entered into toll-liquefaction contracts for up to 7 million tpy of LNG with parties including Gunvor.
|last modified : Mon 08 Dec, 2014 [10:11]|