SK Engineering & Construction (SK E&C) said on November 16 that a joint venture between SK E&C and the US’s KBR (Kellogg Brown & Root) has won USD 4.35 billion deal to build an eight million tonnes per annum (mtpa) natural gas liquefaction plant near Lake Charles, Louisiana.
The joint venture signed a US$4.35 billion EPC (engineering, procurement and construction) contract with Magnolia LNG, a subsidiary of Liquefied Natural Gas Limited (LNGL), based in Perth, Australia. SK E&C has a 30 percept stake (US$1.3 billion) in the project while KBR have a 70 percent stake (US$ 3.05 billion). According to SK E&C, pre-construction work will begin this month and construction will kick off in April when PF (projection financing) is complete. Construction is scheduled for completion in 2020.
SK E&C’s ties with Perth-based LNGL trace back to 2008 when SK E&C participated in LNGL’s natural gas liquefaction plant design project. Through the project, LNGL obtained the world’s best natural gas liquefaction technology.
SK E&C is expected to enjoy a competitive edge over its rivals in overseas markets for natural gas liquefaction plant construction. In particular, as LNGL is also pushing for construction of natural gas liquefaction plants in Canada and Mexico, SK E&C seems well positioned to win more large-scale deals down the road.
