Magnolia LNG picks SK for technical services work
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
(EPC) activities for
MLNGs planned 8 million tpy Magnolia LNG project
in Lake Charles,
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
- Assist MLNG to complete the final resource reports as
part of MLNGs 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of engagement, which is now superseded by the this agreement.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
, 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