Magnolia LNG LLC has executed a memorandum of understanding (MOU) with Kellogg Brown & Root LLC, a wholly owned subsidiary of KBR Inc. and SKE&C USA Inc. (SKEC) whereby KBR and SKEC propose to execute a joint venture agreement on a 70%/30% participation basis to deliver the Magnolia LNG Project.
The MOU follows the execution of a technical services agreement between Magnolia LNG and SKEC in March 2014 and a subsequent technical services agreement with KBR on Jan. 5. Under the agreements, the companies 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.
The Magnolia LNG project is a proposed $3.5 billion, eight million tonne per annum mid-scale LNG facility to be located in the Port of Lake Charles, La. The companies anticipate beginning construction later this year with initial start-up operations beginning in 2018.
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