Microsoft Word - Release ASX 2015-03-02 EPC JVA Finalized.docx
ASX/MEDIA RELEASE
2 March 2015
MAGNOLIA EPC CONTRACTOR JOINT VENTURE (JV) FINALIZED
Liquefied Natural Gas Limited (ASX: LNG; OTC ADR: LNGLY) (the Company) is pleased to advise that its wholly owned subsidiary, Magnolia LNG, LLC (MLNG) has achieved the milestone set for finalization of the Engineering, Procurement and Construction (EPC) Joint Venture Agreement (JVA) between the selected MLNG joint venture Contractor parties in support of continued advancement of the MLNG project.
KBR and SK E&C USA, who will deliver the EPC phase of the MLNG Project, have completed the execution of the formal joint venture agreement as per the previously announced schedule. The executed JVA calls for KBR to provide the Project Director for the Joint Venture, while SK E&C USA will provide the Deputy Project Director, with a 70%‐30% KBR‐SK ownership structure in the JV as originally planned. A three‐member Executive Committee (one member from SK and two from KBR) will be formed to provide oversight to the EPC execution team under the management of the Project Directors. The project task force team will be located in the KBR Tower in downtown Houston, where project activities under the current Technical Services Agreements leading to the EPC Contract are underway.
Maurice Brand, the Company's Managing Director and Chief Executive Officer, said "this signing of the Joint Venture Agreement formalizes the EPC Contractor arrangement for Magnolia LNG that was established under the MOU originally signed between MLNG, KBR and SK E&C USA in December 2014. The JVA encompasses the full four‐train, 8 mtpa planned capacity of the MLNG facility and supports our planned transition into the EPC project phase in 2015."
For further information contact:
Mr Maurice Brand
Managing Director/Chief Executive Officer
Liquefied Natural Gas Limited
Level 1, 10 Ord Street
West Perth WA 6005
Telephone: +61 8 9366 3700 e: [email protected]www.LNGlimited.com.au
Mr John Baguley
MLNG Chief Operating Officer
Magnolia LNG LLC
1001 McKinney Street, Suite 400
Houston ,Texas, USA Telephone + 1 713 815 6940 e: [email protected]www.magnoliaLNG.com
About Liquefied Natural Gas Limited
Liquefied Natural Gas Limited is an ASX listed company (Code: LNG and OTC ADR: LNGLY) whose portfolio consists of 100% ownership of the following companies:
Magnolia LNG LLC (Magnolia LNG), a US‐based wholly owned subsidiary of LNGL, which is developing an 8 million tonne per annum (mtpa) LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
Bear Head LNG Corporation (Bear Head), a Canadian based wholly owned subsidiary of LNGL, which is developing an 8 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
Gladstone LNG Pty Ltd, a wholly owned subsidiary, which is progressing the 3.8 mtpa Fisherman's Landing LNG (FLLNG) Project at the Port of Gladstone in Queensland, Australia; and
LNG Technology Pty Ltd, a wholly owned subsidiary, which owns and develops the Company's OSMR® LNG liquefaction process, a mid‐scale LNG business model that plans to deliver lower capital operating costs, faster construction and improved efficiency, relative to larger traditional LNG projects.
About the Magnolia LNG Project
The Magnolia LNG Project is 100% owned by Magnolia LNG LLC, which is a wholly owned subsidiary of Liquefied Natural Gas Limited. The project comprises the proposed development of an 8 mtpa LNG project on a 115 acre site, on an established LNG shipping channel in the Lake Charles District, State of Louisiana, United States of America.
The project is based on the development of four x 2 mtpa LNG production trains using the Company's wholly owned OSMR® LNG process technology, and the completed LNG plant front end engineering and design from the Company's Gladstone Fisherman's Landing LNG Project in Queensland, Australia.
Magnolia LNG Project's business model is to provide liquefaction services to LNG buyers who pay a monthly fixed capacity fee, plus all LNG plant operating and maintenance costs. In addition, each LNG Tolling Party is responsible for supplying and transporting gas to the Magnolia LNG Project at its own expense.
For further information on the Magnolia LNG project, please visit www.magnoliaLNG.com.
DisclaimerForward‐looking statements may be set out within this correspondence. Such statements are only predictions, and actual events or results may differ materially. Please refer to our forward‐looking statement disclosure contained on our website at www.LNGLimited.com.au. For a discussion of important factors which could cause actual results to differ from these forward‐looking statements, please refer to LNG Limited's Annual Report and Accounts. LNG Limited does not undertake any obligation to update publicly, or revise, forward‐looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.