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LNG progresses with Louisiana project

LNG Louisiana Project

Liquefied Natural Gas has made progress with its Magnolia LNG project in Louisiana as two key steps have been taken in readiness for the engineering, procurement, construction and commissioning phase.

The company has agreed on contract terms and conditions with the Kellogg Brown & Root LLC and SK E&C Group joint venture (KSJV).

It has also  selected Clough to provide owner’s engineer services for the EPC phase of the project.

Magnolia LNG is planned as a 8 million tonne per annum liquefied natural gas export project comprising of four liquefaction trains, each capable of producing up to 2Mtpa of LNG (1.7Mtpa firm).

Financial close is expected this year with early works to begin in the second half of 2015 and site work is expected to begin in early 2016 with the project remaining on track for first LNG at the end of 2018.

John Baguley, Magnolia LNG chief operating officer, said: “The alignment of the project activities and planning with the regulatory process is critical to advancing the project at a pace to meet our commitments to deliver LNG to our customers by the end of 2018.

“Our execution plans and activities are established on this basis and also optimised to enable the sequential completion of the full four train, 8Mtpa MLNG facility.

“The agreement with KSJV on the contract terms and conditions marks an important step, in that it forms the basis for the final lump sum turnkey pricing reflecting current market conditions, and timed to initiate site works consistent with the availability of the necessary permits and authorisations.

“This also allows the project to initiate an early works program to de-risk the project schedule and maximize the use of the time available until our actual site works can begin.”

The Original Written by Laura Redpath/ENERGY VOICE

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