Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.

Magnolia LNG picks SK for technical services work

04.14.2014  | 

Australia-based Liquefied Natural Gas reported that it has signed a technical services agreement with SKEC Group for its 8 million tpy Magnolia LNG project (MLNG) in Lake Charles, Louisiana.


Australia-based Liquefied Natural Gas subsidiary Magnolia LNG has executed a technical services agreement with SK Engineering and Construction Co. (SKEC Group).

The deal relates to the ongoing engineering, procurement and construction (EPC) activities for MLNG’s planned 8 million tpy Magnolia LNG project in Lake Charles, Louisiana.

Under the agreement, the SKEC Group will, among other things:

  • Continue to review all pre-front end engineering design (FEED) information and data included in the preliminary resource reports submitted to the Federal Energy Regulatory Commission (FERC).

  • Assist MLNG to complete the final resource reports as part of MLNG’s filing application to FERC, which is targeted for submission by the end of April 2014.
  • Complete the FEED for the Magnolia LNG project including gas pre-treatment facilities, 4 LNG trains (each with nominal LNG production capacity of 2 million tpy),2 x 160,000 cubic meter full containment storage tanks, jetty and ship loader facilities and all related infrastructure and services.

  • Prepare a detailed lump sum turn-key (LSTK) EPC cost estimate on an open book basis by November 28, 2014.

  • Negotiate and agree with MLNG a detailed LSTK EPC contract “term sheet”, which is targeted for completion by June 30, 2014.

  • Negotiate and agree a definitive and binding LSTK EPC contract based on the term sheet.

The SKEC Group says it has been progressing for some time on several of the above activities under a shorter-term letter of engagement, which is now superseded by the this agreement.

In addition, the SKEC Group has already completed a satisfactory detailed review of the OSMR process technology, which will be employed in the Magnolia LNG project, and provided the company with an initial estimated EPC cost of $1.57 billion, which was consistent with the budget estimate, including appropriate contingencies.

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.



Related articles


Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry


Is 2016 the peak for US gasoline demand?




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2016 Hydrocarbon Processing. © 2016 Gulf Publishing Company.