Liquefied Natural Gas Limited (LNGL or the Company) is pleased to advise that its wholly owned subsidiary, Magnolia LNG LLC (Magnolia), has agreed to an updated legally binding lump sum turnkey (LSTK) fully wrapped engineering, procurement, and construction contract (EPC Contract) with the KBR-SKE&C joint venture (KSJV), in relation to the Magnolia LNG project (MLNG). The updated agreement reflects the entire scope of the original EPC Contract amended for updated subcontractor pricing, costs associated with increasing Magnolia’s liquefaction capacity, and additional scope of work to be provided by the KSJV that were previously LNGL’s responsibility.
The updated agreement is valid until December 31, 2019 and incorporates the 0.8 million tonnes per annum (mtpa) capacity uplift for Magnolia, which is undergoing Federal Energy Regulatory Commission (FERC) approval process, for a total installed capacity of 8.8 mtpa.
LNGL Managing Director and Chief Executive Officer, Greg Vesey said, “The updated EPC Contract cost is US$4.623 billion based on 8.8 mtpa, providing an installed capacity EPC cost/tonne price of US$525. This agreement maintains the certainty of cost and capability with a world-class EPC provider. I wish to thank the LNGL, KBR and SKE&C teams for their efforts to complete this agreement and provide Magnolia with the most competitive, realistic, and transparent EPC contract in the industry.”
The initial agreement with KSJV was signed on November 16, 2015.
