MAGNOLIA LNG announced it will conclude its engineering, procurement and construction (EPC) contract negotiations with the KBR-SK joint venture (KSJV) in the fourth quarter 2015.
KSJV will provide parent company LNG Limited (LNGL) with a fixed‐price on the full 8 million tonnes per annum (mtpa) project, as well as a 6 mtpa project, providing certainty of pricing for a six‐month period from the EPC contract’s effective date, Magnolia LNG said.
The two firm KSJV prices allow LNGL flexibility in its final investment decision to match a firm EPC contract price with the outcome of ongoing liquefaction capacity marketing efforts, without further KSJV negotiations during the six‐month period.
In addition the KSJV will fully guarantee the LNG production and fuel gas efficiency of each train at the guaranteed production rate of 206 metric tonnes/hour (1.7 mtpa equivalent).
Magnolia LNG said the KSJV will also fuel gas efficiency of 8 per cent, incorporating the optimised single mixed refrigerant (OSMR) process design provided by LNGL.
The Magnolia LNG project is wholly owned by Magnolia LNG, a wholly owned subsidiary of LNGL.
The project comprises the proposed development of an 8 mtpa LNG project on a 46.5 hectare site, located on an established LNG shipping channel in the Lake Charles District, Louisiana, America.
Based on development of four LNG production trains of 2 mtpa each, the project will use the company’s wholly-owned OSMR LNG process technology.
The Magnolia LNG project has received its FERC issued Schedule of Environmental Review (SER), setting 16 November 2015 as the anticipated date for issuance of the project’s final environmental impact statement (FEIS).
A draft environmental impact statement (DEIS) was released on 17 July 2015.
Magnolia LNG signed a binding agreement with Meridian LNG Holdings Corporation for firm capacity rights for up to 2 mtpa on 22 July 2015.
Magnolia LNG continues negotiations with a number of other LNG buyers for the purchase of LNG on 20‐year terms with extension options.
LNGL is planning to list on an appropriate United States stock exchange closer to the start of full construction of the Magnolia project, the company said in its annual report.