EthosEnergy awarded first operations and maintenance contract with Magnolia LNG worth $176.8M

News provided by

Aug 23, 2016, 10:49 ET

HOUSTON, Aug. 23, 2016 /PRNewswire/ -- EthosEnergy has been awarded a $176.8m contract by Magnolia LNG (MLNG) for the first third party operations and maintenance (O&M) services partnership at their Lake Charles production facility in Louisiana, US.

The O&M specific services include mobilization followed by full care, custody and control of the facility, as well as full responsibility for filling operations of the vessels at the dedicated mooring location adjacent to the facility.

John Baguley, Chief Operating Officer of Magnolia LNG said, "The operations and maintenance agreement we have reached 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.

"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."

Mark Dobler, CEO of EthosEnergy said, "We have leveraged our extensive O&M experience gained in the power generation sector to position us well to deliver these services in the oil & gas and wider energy-related markets. The depth and breadth of this expertise allows us to provide MLNG with a tailored solution, adding value to the life cycle of the project and supporting the transition of Magnolia into the production phase.

"Our tried and tested O&M performance management systems and technology are designed to drive facility production effectiveness and identify improvements that will deliver long-term efficiencies for MLNG."

Specific EthosEnergy O&M services include Mobilization followed by full care, custody, control O&M services for a 4 train, 2 mtpa each, natural gas liquefaction facility. EthosEnergy will also be responsible for filling operations of the vessels at the dedicated mooring location adjacent to the facility.

Notes to Editor

EthosEnergy is a leading independent service provider of rotating equipment services and solutions to the power, oil & gas and industrial markets. Globally, these services include power plant engineering, procurement and construction; facility operations & 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 high-speed rotating equipment. www.ethosenergygroup.com

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® 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 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).

Logo - http://photos.prnewswire.com/prnh/20160628/384125LOGO

SOURCE EthosEnergy