Liquefied Natural Gas Ltd Stock Market Press Releases and Company Profile
Magnolia LNG signs EPC MOU with KBR and SKE&C
Magnolia LNG signs EPC MOU with KBR and SKE&C

Perth, Jan 19, 2015 AEST (ABN Newswire) - Liquefied Natural Gas Limited (googlechartASX:LNG) (googlechartLNGLY:OTCMKTS) (the Company) is pleased to advise that its wholly owned subsidiary, Magnolia LNG LLC (MLNG), has executed a Memorandum of Understanding (MOU) with Kellogg Brown & Root LLC, a wholly owned subsidiary of KBR, Inc. (KBR) and SKE&C USA, Inc, (SKEC) whereby KBR and SKEC propose to execute a Joint Venture Agreement (JVA) on a 70/30 percent participation basis to deliver the 8 mtpa four train Magnolia LNG Project.

The MOU follows the execution of a Technical Services Agreement with SKEC in March 2014 and a subsequent Technical Services Agreement with KBR that was announced on the 5 January 2015. Under the Technical Services Agreements the parties will complete all due diligence in relation to technical commercial and contractual matters that will enable the EPC JV to execute a lump sum, turnkey engineering, procurement, construction, commissioning, start-up and performance testing EPC Contract for the LNG plant.

Magnolia LNG has set the following milestone schedule;

- JV Agreement between KBR and SKEC February 2015

- Initialling EPC Contract between Magnolia LNG and the JV March 31, 2015

- EPC Contract signing between Magnolia LNG and JV April, 2015

SKEC has already initialled the EPC contract, which incorporates all requirements stipulated by BNP Paribas, Magnolia's project finance adviser, Merlin Advisors LLC, the lenders' technical consultant, legal advisors White and Case and Stonepeak Partners LLC, the proposed Magnolia LNG Project Equity partner. Magnolia LNG does not expect any material changes to the EPC contract.

LNGL Managing Director and Chief Executive Officer, Maurice Brand, said that, "the execution of the MOU with KBR and SKEC was a further positive step towards the formation of the EPC JV that will provide the 'EPC Wrap' that is required by both project lenders and equity participants.

The EPC JV structure is common in the LNG industry with each participant able to provide their experience and expertise. KBR is a well-credentialed LNG EPC contractor and will provide the Project Director and access to the full global resources of the KBR group. This will be particular relevant as Magnolia LNG moves to commit to the full 8 mtpa" said Mr Brand.

MLNG's Chief Operating Officer, John Baguley added, "Our MLNG team look forward to working with KBR in their joint venture with SKEC as Magnolia LNG advances towards a final EPC Contract and our planned financial close in mid-2015. During the period through to financial close we will be working to incorporate any comments received from FERC during their preparation of the Draft Environmental Impact Statement, and to undertake the necessary rigorous planning and scheduling required to support achieving first LNG in the fourth quarter of 2018."

About KBR Inc. (googlechartNYSE:KBR): Visit www.kbr.com.

KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing about 27,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses:

- Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through Granherne/Energo and GVA;

- Engineering & Construction, including Upstream Oil & Gas; LNG/GTL; Downstream Petrochemicals and Chemicals; and differentiated EPC; and,

- Government Services, including program management and long term annuity contracts.

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services and integrated EPC skills to ensure a consistent project delivery with predictable results. At KBR, we deliver. Visit www.kbr.com.

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About Liquefied Natural Gas Ltd

Liquefied Natural Gas Limited (ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:

- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;

- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;

- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and

- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.

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Contact

Mr Maurice Brand
Managing Director/Chief Executive Officer
Liquefied Natural Gas Limited
Level 1, 10 Ord Street
West Perth WA 6005
Telephone: +61 8 9366 3700
e: lng@LNGIimited.com.au
www.LNGIimited.com.au

Mr John Baguley
MLNG Chief Operating Officer
Magnolia LNG LLC
1001 McKinney Street, Suite 400
Houston /Texas, USA
Telephone + 1 713 815 6940
e: info@magnoliaLNG.com
www.magnoliaLNG.com



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