Name and Location
Magnolia liquefied natural gas (LNG) project, Louisiana, US.

Client
Magnolia LNG, a wholly owned subsidiary of Liquefied Natural Gas Limited (LNGL).

Stonepeak Partners is earning an estimated 50% stake in the project for contributing the full $660-million project equity requirement.

Project Description
The project involves the development of a midscale LNG facility of up to eight-million tons a year in the Port of Lake Charles, Louisiana, using LNGL’s optimised single mixed refrigerant technology.

The development will comprise four liquefaction trains, each capable of producing up to two-million tons a year of LNG.

Feed gas for the project will be sourced from the highly liquid US gas market. Gas will be delivered to the site through the Kinder Morgan Louisiana pipeline that traverses the 44 ha site.

Value
The indicative capital estimate for the project is $3.5-billion.

Duration
First LNG exports are planned for the second half of 2018.

Latest Developments
New York Stock Exchange-listed KBR has been awarded a technical services agreement by Magnolia LNG to provide cost verification and other services associated with the delivery of the Magnolia LNG project.

Under the terms of the contract, KBR will complete a front-end engineering design (Feed) gap assessment and work plan, as well as support the completion of the remaining Feed activities. The agreement includes the development of a project engineering, procurement and construction (EPC) contract execution plan; a schedule, contract and pricing; and an EPC bridging plan for the construction of the export facility.

In addition, KBR has signed a memorandum of understanding with Magnolia LNG and Korea’s SK E&C (SKEC) USA, under which KBR and SKEC agree to form a joint venture to execute EPC of the initial two LNG production trains with the provision of two additional trains. Upon completion, the four-train Magnolia LNG facility will have the capacity to export eight-million tons a year of LNG.

Key Contracts and Suppliers
KBR (technical services agreement).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Magnolia LNG, tel +1 337 656-9200 or email info@MagnoliaLNG.com.
LNGL, tel + 61 8 9366 3700, fax + 61 8 9366 3799 or email LNG@LNGlimited.com.au.
KBR director, communications Richard Goins, tel + 1 713 751 9471 or email mediarelations@kbr.com.