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An artist's rendition of the proposed Magnolia LNG plant. (Special to the American Press)

An artist's rendition of the proposed Magnolia LNG plant. (Special to the American Press)

Magnolia LNG awards FEED contract to SKE&C

Last Modified: Monday, May 05, 2014 10:04 AM

By Frank DiCesare / American Press

For the fifth time in less than a year a major engineering and design contract has been awarded for one of the region’s proposed petrochemical projects.

Magnolia LNG officials announced that SK Engineering & Construction Co. of South Korea has been awarded the front-end engineering and design contract for the company’s proposed LNG plant, which will be built along the Industrial Canal.

Ernie Megginson, Magnolia’s vice president of project development, said the company signed a memorandum of understanding with SKE&C in January and awarded it the contract last week.

“They are very qualified,” Megginson said. “They have been involved with other projects along the Gulf Coast, but Magnolia will be the first LNG project that they’ve been involved with in the Gulf Coast.”

He said SKE&C has set up a 250-man office in Houston. The company will design Magnolia’s $3.7 billion plant, hiring subcontractors to construct the facility and overseeing all of the work done on site.

Four FEED contracts were awarded last year for plant projects. Technip, a Paris-based engineering firm, was awarded two separate FEED contracts to design and oversee construction of Sasol’s multibillion-dollar gas-to-liquids complex and supply proprietary ethylene technology for the company’s proposed ethane cracker facility. Technip was also awarded a FEED contract for Trunkline LNG’s proposed plant expansion.

Fluor, an engineering firm based in Irving, Texas was awarded a FEED contract from Sasol in July to design its ethane cracker.

Magnolia officials will be submitting its formal application for a construction permit to the Federal Regulatory Energy Commission on April 30. Megginson said the company hopes to receive FERC’s permit by mid-2015 after which construction on the facility can begin.

Posted By: Clifton On: 5/5/2014

Title: Foreign companies design and build in Louisiana

Why is there no public outcry when Magnolia and Sasol hire foreign companies to design and build their Louisiana based facilities? Are there no American owned design engineering firms qualified to do the work?

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