SK Engineering wins EPC work for Magnolia LNG exports in Louisiana
Australia-based Liquefied Natural Gas Ltd. has enlisted South Korea's SK Engineering and Construction as the engineering, procurement and construction (EPC) contractor for its planned 8 million tpy Magnolia LNG export project in Lake Charles, Louisiana.
Construction of the project is slated to begin in 2015, with operations starting up in mid-2018.
Under the agreement, the two companies will work together to reach a bankable fixed price EPC contract for the project.
SK has already reviewed Magnolia LNG's OSMR process technology, which will be used on the project.
Subject to final verification, the project will include four LNG production trains, each with a minimum design capacity of 2 million tpy and a capacity guaranteed by SK of at least 1.7 million tpy.
SK also gave an initial capital cost estimate of $1.57 billion for the first phase of EPC works. The first phase will include two LNG trains, gas treatment facilities, two 160,000 cubic meter storage tanks, a jetty and ship loading facilities, and related infrastructure.
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