SK E&C, Australian company aim to build LNG plant in U.S.

SK Engineering and Construction said yesterday that it signed a memorandum of understanding with Australia’s Magnolia LNG to build a liquefied natural gas (LNG) plant near Lake Charles, Louisiana.

SK E&C said that this is the first time a Korean builder will build an LNG plant overseas. The project for the 3.4-million-ton capacity plant is estimated to be worth $1.57 billion. SK E&C and Magnolia are expected to sign a formal agreement early next year.

The affiliate of SK Group said that the deal could be the beginning of Korean companies entering the global liquefaction plant construction market that has been controlled by U.S. companies like APCI and ConocoPhillips.

SK E&C said that there are some 1,300 undeveloped gas wells worldwide and that it expects to have more orders for liquefaction plants.