SK E&C USA has secured an engineering, procurement and construction (EPC) contract for Liquefied Natural Gas’ Magnolia LNG (MLNG) project in Louisiana, US.
The contract covers the initial four million tonnes per annum (mtpa) LNG installation, featuring two LNG trains.
Go deeper with GlobalData
Each LNG train will have a design capacity of 2 mtpa, two 160,000m³ storage tanks, a jetty, a ship loading facility and associated infrastructure.
The EPC contract, awarded by Liquefied Natural Gas’ subsidiary MLNG, also covers all required approvals and licences for the enitirety of the 8 mtpa project. Plans also include two additional 2 mtpa trains, which will follow the initial installation.
Capital costs for the initial contracted work for two of the four planned liquefaction trains is estimated to be $1.986bn.
Liquefied Natural Gas managing director and CEO Maurice Brand said that based on the extensive front-end engineering and design (FEED) and costing work completed, and with the open book nature of the SK E&C Group agreements, the final EPC capital cost is estimated to be $3bn.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe total MLNG project cost is estimated at $3.5bn.
MLNG first advised the estimated total cost of $3.5bn on 24 February and the capital cost estimate was included in all documentation submitted to the Federal Energy Regulatory Commission (FERC) as part of the company’s filing currently being progressed with FERC.
MLNG owns the project, which will be developed on a 115 acre site, on an LNG shipping channel in the Lake Charles district in Louisiana, US.
The project aims to provide liquefaction services to LNG buyers who pay a monthly fixed capacity fee and all LNG plant operating and maintenance costs.
Each LNG tolling party is required to supply and transport gas to the MLNG project at its own expense.
.gif)
