Global Alliances with Siemens and EthosEnergy
Perth, Aug 24, 2015 AEST (ABN Newswire) - Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) is pleased to advise that it is entering into two additional key supplier alliance agreements (SAA) with Siemens Energy Inc. (ETR:SIE) (SIEGY:OTCMKTS) (Siemens) and EthosEnergy Group (EthosEnergy), respectively. These agreements call for LNGL to work collaboratively with both Siemens and EthosEnergy on current and future Company projects. The use of global alliance agreements with key suppliers is central to LNGL's strategy to produce standardized, repeatable designs and processes across all its projects and operations.
Highlights:
- Siemens to provide OSMR(R) main process compressor equipment
- EthosEnergy Group to provide operations and maintenance services
- Agreements expand global alliance program in support of strategy to standardize OSMR(R) LNG technology design and operations approach
Siemens will provide the Magnolia LNG (MLNG) project in Lake Charles, Louisiana, USA with the main OSMR(R) process compression equipment and drivers for the full four train, eight-mtpa LNG project. This equipment includes the main mixed refrigerant compressors and their gas turbine drivers, the ammonia refrigerant compressors with their steam turbine drivers, and the motor driven process gas booster compressors. Altogether, a total of 20 process compressors plus their associated drivers are covered under the purchase agreement reached with MLNG.
Maurice Brand, LNGL Managing Director and CEO, advised, "The alliance agreement with Siemens represents the second major step in our program to achieve a high degree of commonality across our global OSMR liquefaction facilities. Together with the earlier alliance agreement reached with Chart Industries for the cold boxes, we have now standardized the heart of the liquefaction process. This in turn enables LNGL to further de-risk the delivery of our strategy to become the low cost leader in the LNG industry through replication of our simple and reliable, highly efficient innovative mid-scale technology and project execution methods."
"We are pleased that LNGL has awarded us with the supply of the main compression equipment and drivers for the Magnolia LNG project", said Lisa Davis, Member of the Managing Board of Siemens AG. "LNGL's modular construction approach represents a very strong platform in a growing market. Our solution offers best-in-class emissions performance, space saving design and lower expected lifecycle costs."
Separately, MLNG selected EthosEnergy to provide long-term operations and maintenance services for the production phase of the MLNG project. The selection of EthosEnergy, a venture between Wood Group and Siemens, provides for proper planning, development and implementation of operating procedures as MLNG moves from construction into LNG production.
These operating procedures will evolve into the standard deployed across all LNGL operating assets.
"The operations and maintenance agreement with EthosEnergy is an important step in our program to transition Magnolia from our current activities focused on permitting and design, into the subsequent construction, commissioning and LNG production phases," reported MLNG Chief Operating Officer, John Baguley. "We are committed to establishing the tools, processes, and procedures that enable MLNG to achieve the highest levels of excellence in plant reliability and safety. We look forward to integrating EthosEnergy into our team as a cornerstone element in achieving this necessary excellence. The established relationship between Siemens and EthosEnergy represents an added benefit to this arrangement now that we have selected Siemens to provide our process compressor equipment."
ABOUT MAGNOLIA LNG:
The Magnolia LNG project is 100% owned by Magnolia LNG LLC, which is a wholly owned subsidiary of LNGL. The project comprises the proposed development of an 8 mtpa LNG project on a 115-acre site, located on an established LNG shipping channel in the Lake Charles District, State of Louisiana, United States of America. The project is based on development of four LNG production trains of 2 mtpa each using the Company's wholly owned OSMR(R) LNG process technology.
Feed gas supply will come from the highly-liquid US Gulf Coast gas market via several gas suppliers.
Gas supply will be delivered to the site via the Kinder Morgan Louisiana Pipeline (KMLP). Magnolia LNG has entered into a 20-year binding pipeline capacity agreement with Kinder Morgan Louisiana Pipeline LLC to deliver gas to the site for the full 8 mtpa of the project.
The Magnolia LNG project has received its FERC issued Schedule of Environmental Review (SER), setting November 16, 2015 as the anticipated date for issuance of the project's final environmental impact statement (FEIS). The draft environmental impact statement (DEIS) was released on 17 July 2015. The SER also establishes a 90-day-post-FEIS decision deadline for all agencies responsible for issuing related federal authorizations.
Magnolia LNG signed a binding agreement with Meridian LNG Holdings Corp for firm capacity rights for up to 2 mtpa on 22 July 2015. Magnolia LNG continues negotiations with a number of other LNG buyers for the purchase of LNG on 20-year terms (with extension options). LNG buyers contract for liquefaction services under two contract models – a Liquefaction Tolling Agreement, whereby the LNG export terminal is only responsible for processing natural gas into LNG, and an LNG Sales and Purchase Agreement under which the customer buys LNG on a free on board basis (FOB).
ABOUT SIEMENS
Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 165 years. The company is active in more than 200 countries, focusing on the areas of electrification, automation and digitalization. One of the world's largest producers of energy-efficient, resourcesaving technologies, Siemens is No. 1 in offshore wind turbine construction, a leading supplier of gas and steam turbines for power generation, a major provider of power transmission solutions, and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. The company is also a leading provider of medical imaging equipment – such as computed tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as clinical IT. Further information is available on the Internet at http://www.siemens.com.
ABOUT ETHOSENERGY GROUP
EthosEnergy is a leading independent service provider of rotating equipment services and solutions to the power, oil and gas and industrial markets. Globally, these services include power plant engineering, procurement and construction; facility operations and maintenance; design, manufacture and application of engineered components, upgrades and re-rates; repair, overhaul and optimization of gas and steam turbines, generators, pumps, compressors and other highspeed rotating equipment. Further information is available on the Internet at http://www.ethosenergygroup.com.
About Liquefied Natural Gas Ltd
Liquefied Natural Gas Limited (
ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:
- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and
- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
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