SEOUL, KOREA - SK Engineering and Construction has plunged into a business of natural gas liquefaction process hitherto monopolized by a few overseas contractors. The company said on February 11 that it signed an agreement with Magnolia LNG for a 3.4-million-ton natural gas liquefaction plant in Lake Charles, Louisiana.

 

Magnolia LNG is a U.S. subsidiary of Australia-based Liquefied Natural Gas Ltd. The order volume is estimated at US$1.57 billion. The Korean company will set out on the project early next year after signing an EPC contract with Magnolia LNG. 

 

The latest contract is an important milestone for SK E&C as the natural gas liquefaction plant building technology has been closely guarded by global leaders like Air Products & Chemicals, Inc. and ConocoPhillips.

 

SK E&C has had an experience in participating in a development project led by the Australian company in 2008 to design and build a natural gas liquefaction facility in Australia. From this experience, the company learned to save cost by up to 60 percent while improving efficiency by a large margin.