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McDermott joint venture extends agreement with Cameron LNG

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McDermott International, together with its joint venture partner Chiyoda, has signed an agreement with Cameron LNG related to the construction of the LNG liquefaction project in Louisiana.

The agreement includes the following key components:

• Provides the opportunity for incentive bonus payments for achieving construction and commissioning milestones on specified dates for Trains 2 and 3.

• Aligns the start dates for any schedule-related liquidated damages to be consistent with the current schedule.

• Fully aligns and strengthens the commitment of the JV to complete the project in accordance with the current schedule.

“Over the past year, we have further strengthened our relationship with Cameron LNG and our leadership, oversight, execution, forecasting and reporting on the project. In the last few months, the joint venture project team has made tremendous progress, including first liquid and first cargo from Train 1,” explained Samik Mukherjee, McDermott Group Senior Vice President, Projects. “We are extremely pleased with the agreement, which is a testament to the progress and the strong performance of our project team. It was crafted with the full support and collaboration of Cameron LNG to optimise the timing and cost-effectiveness of the remaining work – and it does so in a way that we believe will benefit all involved parties.”

Since the initial contract award in 2014, McDermott and Chiyoda have provided the engineering, procurement and construction (EPC) for the Cameron LNG project. The project includes three liquefaction trains with a projected export capacity of more than 12 mill tonnes per annum of LNG, or about 1.7 bill cu ft per day.

The project was around 90% complete as of the end of the first quarter of 2019. The company said it expects initial production from Trains 2 and 3 in the first quarter of 2020 and the second quarter of 2020, respectively. 

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