Magnolia LNG signs MOU for fourth train

Magnolia LNG LLC (MLNG) signed a memorandum of understanding with Kellogg Brown & Root LLC, a wholly owned subsidiary of KBR Inc. (KBR), and SKE&C USA Inc. (SKEC) whereby KBR and SKEC, forming a 70-30 joint venture to deliver the 8-million tonne/year four train Magnolia LNG project.

Magnolia LNG LLC (MLNG) signed a memorandum of understanding with Kellogg Brown & Root LLC, a wholly owned subsidiary of KBR Inc. (KBR), and SKE&C USA Inc. (SKEC) whereby KBR and SKEC, forming a 70-30 joint venture to deliver the 8-million tonne/year four train Magnolia LNG project.

The MOU follows last year’s letting of an engineering, procurement, and construction contract to SKEC (OGJ Online, Dec. 3, 2014) and a subsequent technical services agreement with KBR announced earlier this month. KBR and SKEC will complete all due diligence in relation to technical, commercial, and contractual matters to execute a lump sum EPC contract on the project, as well as commissioning, start-up, and performance testing of the LNG plant.

MLNG expects the JV agreement to be finalized next month, paving the way for an EPC contract signing in April. The company does not expect any material changes to the EPC contract on the way to first LNG fourth-quarter 2018.

The project comprises development on an established LNG shipping channel in Lake Charles, La., using MLNG’s wholly owned optimized single-mixed refrigerant (OSMR) process technology and the completed LNG-plant front end engineering and design from parent-company Liquefied Natural Gas Ltd.’s Gladstone Fisherman’s Landing LNG project in Queensland, Australia.

Contact Christopher E. Smith at chriss@ogjonline.com.

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