Louisiana LNG Project Developer Extends EPC Contract
Liquefied Natural Gas Limited (LNGL), whose Magnolia LNG, LLC subsidiary is developing an LNG export terminal in the Port of Lake Charles, La., said Monday that it has extended the validity period of its current binding lump sum turnkey (LSTK) contract for the project through Dec. 31, 2017. In November 2015, LNGL signed the engineering, procurement and construction (EPC) contract with KSJV, a KBR-SKE&C joint venture led by KBR.
"The extension of our agreement with KBR-SKE&C provides us with additional confidence as we focus on finalizing offtake agreements and moving toward a final investment decision (FID) for Magnolia, while we also maintain Magnolia's standing as the low cost, low risk, construction ready Gulf Coast LNG export project," Greg Vesey, LNGL's managing director and CEO, said in a company statement.
The project, which is slated to produce at least 8 million tons per annum (mtpa) of LNG from four 2-mtpa trains, would be located on a 115-acre site adjacent to the Calcasieu Shipping Channel, according to LNGL's website. The facility, which would use LNGL's OSMR process technology, would receive feed gas via the Kinder Morgan Louisiana Pipeline under a 20-year deal, LNGL stated.
LNGL has secured required approvals for the project from the U.S. Federal Energy Regulatory Commission and the U.S. Department of Energy.
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