Magnolia EPC Contractor Joint Venture Finalized
Perth, Mar 2, 2015 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) (the Company) is pleased to advise that its wholly owned subsidiary, Magnolia LNG, LLC (MLNG) has achieved the milestone set for finalization of the Engineering, Procurement and Construction (EPC) Joint Venture Agreement (JVA) between the selected MLNG joint venture Contractor parties in support of continued advancement of the MLNG project.
KBR and SK E&C USA, who will deliver the EPC phase of the MLNG Project, have completed the execution of the formal joint venture agreement as per the previously announced schedule. The executed JVA calls for KBR to provide the Project Director for the Joint Venture, while SK E&C USA will provide the Deputy Project Director, with a 70%-30% KBR-SK ownership structure in the JV as originally planned. A three-member Executive Committee (one member from SK and two from KBR) will be formed to provide oversight to the EPC execution team under the management of the Project Directors. The project task force team will be located in the KBR Tower in downtown Houston, where project activities under the current Technical Services Agreements leading to the EPC Contract are underway.
Maurice Brand, the Company's Managing Director and Chief Executive Officer, said "this signing of the Joint Venture Agreement formalizes the EPC Contractor arrangement for Magnolia LNG that was established under the MOU originally signed between MLNG, KBR and SK E&C USA in December 2014. The JVA encompasses the full four-train, 8 mtpa planned capacity of the MLNG facility and supports our planned transition into the EPC project phase in 2015."
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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