Liquefied Natural Gas Ltd agrees on EPC contract with SKEC Group
Liquefied Natural Gas Limited(ASX:LNG) continues to progress its low cost Magnolia LNG (MLNG) export project in Louisiana with an Engineering, Procurement and Construction contract agreed with SK Engineering and Construction Group.
Total capital cost for the 8 million tonne per annum project remains at US$3.5 billion, or US$440 per tonne.
In addition, the LNG train‐only liquefaction capital costs using the company’s wholly owned OSMR® technology, is estimated at about US$300/tonne.
Capital costs for the initial contracted work for two of the four planned 2Mtpa liquefaction trains is estimated at US$1.986 billion.
The proposed EPC contract will now be reviewed by external advisers to verify bankability with a target execution date this month.
MLNG also remains on schedule for financial close in mid-2015.