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Magnolia LNG developer extends construction contract

Australia's LNG Ltd. extended the construction contract for its proposed Magnolia LNG LLC terminal in Louisiana amid delays in making a final investment decision for the project.

The engineering, procurement and construction, or EPC, contract with KSJV for the project is now valid through June 30, 2019, according to a Dec. 20 news release. KSJV is a joint venture of KBR Inc. and SK E&C Co. Ltd.

The $4.35 billion turnkey contract was initially signed in November 2015 at an installed capacity cost-per-tonne range of $495 to $544, based on the project's final design upon final investment decision.

Magnolia LNG is designed to have up to four liquefaction trains, each capable of producing at least 2.2 million tonnes per annum of LNG. The terminal at the Port of Lake Charles, La., would also have two 160,000-cubic-meter storage tanks and ship, barge and truck loading facilities.

LNG Ltd. has postponed its final investment decision on the project despite holding U.S. federal regulatory approvals to build since 2016. The company cited trade tensions between U.S. and China as the main reason for the delay. LNG Ltd. now expects to make a final investment decision in the first part of 2019.