KBR wins deal to build Magnolia LNG export project in Louisiana

KBR Inc. (NYSE: KBR) on Nov. 16 announced the signing of a major engineering, procurement and construction (EPC) contract by Magnolia LNG (MLNG) for a liquefied natural gas (LNG) facility at the Port of Lake Charles, Louisiana.

KBR will lead the KSJV joint venture with SK Engineering & Construction (South Korea) for execution of the project. The EPC contract covers the detailed engineering, procurement and construction of four LNG production trains each with design capacity of 2 million tonnes per annum (mtpa), two 160,000 m3 full containment LNG storage tanks, LNG marine and ship loading facilities, and supporting infrastructure.

The project will rely on innovative technology involving ammonia pre-cooling for the core liquefaction process, Optimized Single Mixed Refrigerant (OSMR), developed by MLNG’s parent company, LNG Ltd., to achieve a lower cost, more efficient and more environmentally friendly plant.

“We are delighted to work with Magnolia LNG on this ground-breaking project for more innovative, cost effective, efficient and greener LNG,” said Stuart Bradie, KBR President and CEO. “KBR’s long history of success in global LNG, ammonia and plant modularization make us a natural fit for this exciting project and we are pleased to have the opportunity to bring our unique skills, together with our self-perform construction capability and outstanding safety record, to create exceptional value for MLNG.”

KSJV engineering and procurement services will commence immediately and subject to final regulatory approval, construction mobilization on the project is expected to begin the first quarter of 2016. Work on detailed design and early construction planning will proceed immediately under a Limited Notice to Proceed (LNTP) with final release expected in 2016.

Incidentally, the Federal Energy Regulatory Commission on Nov. 13 issued a final environmental impact statement (EIS) for the Magnolia LNG Project proposed by Magnolia LNG and the Lake Charles Expansion Project proposed by Kinder Morgan Louisiana Pipeline LLC. The Lake Charles Expansion Project would include reconfiguration of Kinder Morgan’s existing pipeline system in order to accommodate Magnolia’s request for natural gas service. The projects would provide an LNG export capacity of 1.08 billion cubic feet per day of natural gas.

KBR is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.