Liquefied Natural Gas Limited informed that Magnolia LNG has executed a memorandum of understanding with Kellogg Brown & Root, a KBR unit and SKE&C USA.
KBR and SKEC propose to execute a joint venture agreement (JVA) on a 70/30 percent participation basis to deliver the 8 mtpa four train Magnolia LNG project, stands in the LNG Limited’s statement.
The MOU follows the execution of a technical services agreement with SKEC in March 2014 and a subsequent TSA with KBR that was announced on 5 January. Under the deal the parties will complete all due diligence in relation to technical commercial and contractual matters that will enable the EPC JV to execute a lump sum, turnkey engineering, procurement, construction, commissioning, start-up and performance testing EPC contract for the LNG plant.
Magnolia LNG has set the following milestone schedule:
- JV Agreement between KBR and SKEC February 2015;
- Initialling EPC Contract between Magnolia LNG and the JV March 31, 2015;
- EPC Contract signing between Magnolia LNG and JV April, 2015.
SKEC has already initialled the EPC contract, which incorporates all requirements stipulated by BNP Paribas, Magnolia’s project finance adviser, Merlin Advisors, the lenders’ technical consultant, legal advisors White and Case and Stonepeak Partners, the proposed Magnolia LNG project equity partner.
Press Release; Image. LNG Limited