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Researched by Industrial Info Resources (Sugar Land, Texas)--Sempra Energy (NYSE:SRE) (San Diego, California) says all three trains of its $10 billion Cameron LNG project in Louisiana should be up and running in 2019 under a new settlement agreement reached with the project's engineering, procurement and construction (EPC) contractor.
Sempra, which indirectly owns 50.2% of the project through Cameron LNG Limited Liability Company; and EPC provider CCJV, a joint venture of Chicago Bridge & Iron Company N.V. (NYSE:CBI) (CB&I) (The Hague, Netherlands) and Chiyoda International Corporation (Yokohama, Japan), each announced the settlement agreement on Tuesday.
Located at the site of an existing liquefied natural gas (LNG) regasification terminal near Hackberry, the full complex would comprise three liquefaction trains, each with a capacity of 5 million metric tons per year, a 160,000-cubic-meter LNG storage tank and related facilities. For more information, see Industrial Info's project report
Sempra said in a Securities and Exchange Commission (SEC) filing on Tuesday that the agreement "settles all claims previously raised by [CCJV] that they were owed additional compensation beyond the original contract price and were entitled to schedule extensions under the EPC contract."
Cameron LNG has agreed to additional contract and bonus payments, which are "within the project contingency budgeted by Cameron LNG when Sempra made its final investment decision for the project in August 2014," Sempra said. The payments are subject to CCJV's achievement of certain milestones, including those tied to the commissioning of the LNG trains.
CB&I said in a press statement the settlement also resolves any claims stemming from the impact of Hurricane Harvey, which hit the Texas-Louisiana coast in late August.
"Based on a number of factors, we continue to believe it is reasonable to expect that all three LNG trains at the Cameron LNG liquefaction facility will be producing LNG in 2019," Sempra said in its SEC filing.
CB&I Chief Executive Officer Patrick Mullen said, "This settlement with Cameron LNG marks an important milestone in resolving all past commercial issues and aligning all parties toward the successful completion of the project."
Meanwhile, at Cove Point...
In another LNG development, Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) has pushed back the start of commercial operations at its $4 billion Cove Point LNG facility in Lusby, Maryland, to early next year. Dominion previously anticipated commercial operations would start by the end of this year.
Dominion also said in a press statement it was not renegotiating its LNG sales contracts, following a report that India's oil minister said GAIL (India) LTD was renegotiating its deal with Dominion, according to Reuters.
"The characterization of contract renegotiations is false," Dominion said. "Conversations are ongoing, with export customers in preparation for beginning commercial operations but there have been no changes in the contract terms since initial contract execution, and Dominion Energy does not intend to renegotiate contract terms in the future."
Construction of the 5.25 million-ton-per-year Cove Point liquefaction facility began in October 2014. For more information, see Industrial Info's project report and December 8, 2017, article - Dominion's Cove Point LNG Facility Begins Commissioning, More to Come.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Sempra, which indirectly owns 50.2% of the project through Cameron LNG Limited Liability Company; and EPC provider CCJV, a joint venture of Chicago Bridge & Iron Company N.V. (NYSE:CBI) (CB&I) (The Hague, Netherlands) and Chiyoda International Corporation (Yokohama, Japan), each announced the settlement agreement on Tuesday.
Located at the site of an existing liquefied natural gas (LNG) regasification terminal near Hackberry, the full complex would comprise three liquefaction trains, each with a capacity of 5 million metric tons per year, a 160,000-cubic-meter LNG storage tank and related facilities. For more information, see Industrial Info's project report
Sempra said in a Securities and Exchange Commission (SEC) filing on Tuesday that the agreement "settles all claims previously raised by [CCJV] that they were owed additional compensation beyond the original contract price and were entitled to schedule extensions under the EPC contract."
Cameron LNG has agreed to additional contract and bonus payments, which are "within the project contingency budgeted by Cameron LNG when Sempra made its final investment decision for the project in August 2014," Sempra said. The payments are subject to CCJV's achievement of certain milestones, including those tied to the commissioning of the LNG trains.
CB&I said in a press statement the settlement also resolves any claims stemming from the impact of Hurricane Harvey, which hit the Texas-Louisiana coast in late August.
"Based on a number of factors, we continue to believe it is reasonable to expect that all three LNG trains at the Cameron LNG liquefaction facility will be producing LNG in 2019," Sempra said in its SEC filing.
CB&I Chief Executive Officer Patrick Mullen said, "This settlement with Cameron LNG marks an important milestone in resolving all past commercial issues and aligning all parties toward the successful completion of the project."
Meanwhile, at Cove Point...
In another LNG development, Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) has pushed back the start of commercial operations at its $4 billion Cove Point LNG facility in Lusby, Maryland, to early next year. Dominion previously anticipated commercial operations would start by the end of this year.
Dominion also said in a press statement it was not renegotiating its LNG sales contracts, following a report that India's oil minister said GAIL (India) LTD was renegotiating its deal with Dominion, according to Reuters.
"The characterization of contract renegotiations is false," Dominion said. "Conversations are ongoing, with export customers in preparation for beginning commercial operations but there have been no changes in the contract terms since initial contract execution, and Dominion Energy does not intend to renegotiate contract terms in the future."
Construction of the 5.25 million-ton-per-year Cove Point liquefaction facility began in October 2014. For more information, see Industrial Info's project report and December 8, 2017, article - Dominion's Cove Point LNG Facility Begins Commissioning, More to Come.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
