KBR, Inc. 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, USA. 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 Limited, 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,” continued Bradie.

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.

As work is released under the contract, KBR will be booking revenue into backlog of unfilled orders for KBR’s E&C Business Segment.

About Magnolia LNG

MLNG is 100% owned by Magnolia, which is wholly owned by LNGL. The greenfield project comprises an 8 mtpa or greater plant on a 115‐acre site, located on an established LNG shipping channel in the Lake Charles District, State of Louisiana, USA. The design is based on four LNG production trains of 2 mtpa or greater, each using the Company’s OSMR® LNG process technology.

Feed gas supply for the 8 mtpa or greater project will come from the US Gulf Coast gas market via several gas suppliers, delivered via the Kinder Morgan Louisiana Pipeline (KMLP) under a 20‐year binding pipeline capacity agreement with Kinder Morgan Louisiana Pipeline LLC.

FERC issued the project’s final environmental impact statement (FEIS) and the associated Kinder Morgan Louisiana Pipeline (KMLP) Lake Charles Expansion Project on 13 November 2015. The next step in the FERC process is for the FERC Commissioners to act on MLNG’s and KMLP’s respective applications. U.S. law requires that FERC wait at least 30 days following the issuance of an FEIS before making a decision. Once the 30‐day period has elapsed, FERC may then issue an order on the applications.

MLNG signed a binding agreement with Meridian LNG Holdings Corp for firm capacity rights for up to 2 mtpa on 22 July 2015. MLNG continues negotiations with a number of other LNG buyers for the purchase of LNG on 20‐year terms (with extension options).

About KBR, Inc.

KBR, Inc. (NYSE: 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:

- Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVA
- Engineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial Services
- Government Services, including program management and long term annuity contracts

KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project delivery with predictable results.