Magnolia Further Extends Validity of Engineering, Procurement, and Construction Contract
Perth, Jan 30, 2017 AEST (ABN Newswire) - Liquefied Natural Gas Ltd (
ASX:LNG) (LNGLY:OTCMKTS) (LNGL or the Company) is pleased to advise that its 100% owned subsidiary, Magnolia LNG, LLC (MLNG or Magnolia), has agreed with KSJV to further extend the validity period of the signed engineering, procurement, and construction (EPC) contract through 30 June 2017.
As previously announced on 26 April 2016, Magnolia and KSJV, a KBR - SKE&C joint venture lead by KBR, had extended their original binding lump sum turnkey (LSTK) EPC contract for four LNG trains and associated facilities until 31 December 2016, with a subsequent interim extension to 31 January 2017. This current extension agreement now maintains validity for a further six months, inclusive of January 2017, to 30 June 2017.
LNGL Managing Director and Chief Executive Officer, Greg Vesey stated, "We continue to work closely with key contractors and suppliers such as KSJV to maintain momentum on the Magnolia LNG project as we continue our marketing efforts. This further extension of our LSTK EPC Contract with KBR-SK E&C, together with our FERC Final Order and Department of Energy non-FTA export approval, further cements Magnolia LNG as construction-ready and the next US LNG export project that will move forward into construction and operation".
ABOUT MAGNOLIA LNG PROJECT
Magnolia LNG proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2 mtpa or greater using the Company's patented OSMR(R) LNG process technology. Construction and operation includes two 160,000m3 full containment storage tanks, ship, barge, and truck loading facilities, and supporting infrastructure. The LSTK EPC contract includes all elements of the project necessary to bring the facility into full guaranteed production operations. Magnolia LNG is fully permitted, having received its FERC Order and both FTA and non-FTA approval from the DOE. Final investment decision and initiation of construction is expected upon execution of sufficient offtake agreements to support financing.
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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