LNG Limited of Australia on Friday informed that the validity period of its EPC contract with the KBR-SKE&C joint venture for the Magnolia liquefied natural gas project has been extended.
Both LNGL and KSJV agreed to extend the binding lump sum turnkey engineering, procurement and construction contract, the Perth-based LNG terminal developer said in a statement.
The completion of the extension was targeted for December 31, 2016, however, due to possible third party information delays during the holiday season, the two companies have agreed an interim extension to the EPC contract through January 31, 2017.
This is a bridging step to agreement on a longer term extension, LNG Limited said.
In November 2015, Magnolia and KSJV signed a lump sum turnkey EPC contract with a cost of US$4.354 billion for four LNG trains (a total of 8 mtpa or greater) and associated facilities.
The original agreement maintained the validity of the contract price through 30 April 2016. An extension agreement was subsequently announced in April 2016, guaranteeing the price for additional eight-month period through December 31, 2016.