Magnolia LNG Extends EPC

Australia-listed LNG Ltd, the developer of Magnolia LNG, a planned 8mn metric ton/yr export project at Lake Charles in Louisiana, said January 30 it has agreed a further extension of its previously-signed engineering, procurement, and construction (EPC) contract.

Magnolia and KSJV, a joint venture of US contractor KBR and South Korea's SK E&C, already extended their EPC contract in April 2016 until the end of last month, and then again until January 31; this has now been extended until June 30 2017.

Artist's impression of Magnolia LNG project (Graphic credit: LNG Ltd)

LNGL CEO Greg Vesey said: “This further extension ...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.”

Two projects at Lake Charles – Southern Union, and Magnolia LNG – have full approvals from the US Federal Energy Regulatory Commission (Ferc) and US Dept of Energy but have yet to take final investment decisions and start construction.

A week ago Magnolia LNG signed a heads of agreement to supply 4mn mt/yr of LNG for 20 years to India's Vessel Gasification Solutions, which plans to develop a floating import terminal at Kakinada on the east coast of India. 

Mark Smedley