Liquefied Natural Gas Ltd Stock Market Press Releases and Company Profile
EPC Contract Term Sheet Signed with SK E&C USA
EPC Contract Term Sheet Signed with SK E&C USA

Perth, July 11, 2014 AEST (ABN Newswire) - Liquefied Natural Gas Limited (googlechartASX:LNG) (googlechartLNGLY:OTCMKTS) (the Company) is pleased to advise that its wholly owned subsidiary, Magnolia LNG LLC (MLNG), has executed an EPC Contract Term Sheet with SK E&C USA (EPC Term Sheet) in relation to the first phase of the Company's Magnolia LNG Project.

The Magnolia LNG Project comprises the development of an 8 mtpa LNG export project on the Calcasieu River (near Lake Charles), Louisiana, United States of America. The project will be developed in two phases, with the initial phase comprising two LNG trains, each of 2 mtpa LNG design capacity, two 160,000m3 storage tanks, jetty and ship loading facility and related infrastructure.

The EPC Term Sheet details the generally agreed position of SK E&C and MLNG in relation to over 45 key commercial provisions to be further developed and included in a Lump Sum Turn Key (LSTK) EPC Contract. BNP Paribas, MLNG's project finance adviser and Merlin Advisors LLC, the lenders' technical consultant, contributed to the establishment of the EPC Term Sheet to assist in ensuring bankability of the provisions.

MLNG's Chief Operating Officer, John Baguley, said "LSTK EPC Contracts are very detailed and comprehensive contracts and their negotiation can be extremely protracted. The EPC Term Sheet will materially assist in the early drafting of the LSTK EPC Contract and pave the way for a much shorter negotiation and completion period".

Mr Baguley further said, "SK E&C is continuing to progress the FEED and build-up of the LSTK EPC Contract price under a separate Technical Service Agreement signed in April 2014, and at this stage the program is on schedule and within budget".

The Company is also pleased to inform that Mr Greg Pilkinton will join the MLNG team, as EPC Contracts Manager on 14 July 2014. This will shortly be followed by the appointment of an EPC Planning Director; VP Engineering and Construction, and SVP Facilities Operations.

Mr Baguley said, "These additional personnel will round out MLNG's core engineering, construction and operations team, to enable us to keep pace with the SK E&C work outflow and maintain adherence to the current target to achieve a Financial Close in mid-2015."

About Liquefied Natural Gas Ltd

Liquefied Natural Gas Limited (ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:

- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;

- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;

- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and

- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.

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Contact

Mr Maurice Brand
Managing Director/CEO
Liquefied Natural Gas Limited
Tel: +61-8-9366-3700

Mr David Gardner
Company Secretary
Liquefied Natural Gas Limited
Tel: +61-8-9366-3700



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