Magnolia LNG announced Monday that three executives have been hired to lead the company to its engineering, procurement and construction phase, which is expected to begin next summer.

Rafael Hernandez, a 20-year veteran of the Bechtel Corp., was hired as vice president of engineering and construction; Gregory Pilkinton, the former commercial manager on the Ichthys LNG project in Darwin, Australia, was hired as EPC commercial director; and Ron Hogan, an executive with 40 years of LNG experience worldwide, was hired as EPC planning director.

John Baguley, Magnolia’s chief operating officer, said the company’s new EPC team will be responsible for moving the LNG project toward its EPC phase, a time when hiring for the project’s construction will begin.

“These projects are extremely large and they are very complex and they have a lot moving parts,” he said. “So as we go from a design and permitting phase into an EPC execution phase, we need a bigger team with more horsepower.”

Hernandez will be responsible for the project’s EPC delivery, a time during which he will work closely with Magnolia’s Front-End Engineering Design (FEED) contractor, SK Engineering & Construction Co., to finish the project’s FEED work and prepare the company for its EPC phase. SKE&C was nominated to be Magnolia’s EPC contractor in July, Baguley said.

Pilkington will be responsible for contracts, ensuring that Magnolia’s project team and oversight team are following the terms of the contract. He will also be responsible for ensuring the project’s commercial framework is properly established, Baguley said.

Hogan will be responsible for Magnolia’s EPC readiness planning, Baguley said.

“When moving into the EPC stage you need more people, more resources and more planning,” Baguley added. “Once these things launch they really go fast.”

In order for Magnolia’s EPC phase to begin, Baguley said, the company must receive all of its permits and reach financial close with its investors.

“Prior to EPC we haven’t committed to purchasing the equipment and we don’t have the right permit to go out and start digging into the ground,” he added. “We do planning, design work, strategic work; we set up organizational structures. Once you get that start of contract on EPC then you just launch into this thing full force.”

Magnolia’s estimated $3.5 billion project will consist of four LNG trains, which will be built on 120 acres near the intersection of Henry Pugh Boulevard and Big Lake Road in Lake Charles. Each train will produce 2 million metric tons per year of LNG, which will be stored in two, 160,000-cubic-meter cryogenic tanks. The facility will also have a berth jetty where ships will dock to receive LNG from the plant for export.(Special to the American Press)

Rick Hickman