Oz LNG Limited Updates Magnolia Cost

Australia’s Liquefied Natural Gas Limited (LNGL) said June 24 it had agreed an updated lump-sum turnkey engineering, procurement and construction (EPC) contract with the KBR-SKE&C joint venture (KSJV) that will direct construction of the 8.8mn mt/yr Magnolia LNG project in Louisiana.

The updated agreement reflects the entire scope of the original EPC contract, amended to include updated subcontractor pricing, costs associated with increasing liquefaction capacity by 800,000 mt/yr and additional scope of work by the KSJV that was previously the responsibility of LNGL.

LNGL CEO Greg Vesey said the agreement provides for an EPC cost of $4.623bn, providing an installed capacity cost of $525/metric ton/yr of liquefaction capacity.