McDermott International at Work on North American, Mozambique LNG Projects

---

Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Contractor McDermott International is actively at work on U.S. and Canadian LNG terminals and is in line to lead work on two large Mozambique LNG projects, including TotalEnergies' recently restarted project on the Afungi Peninsula.

---

McDermott: An LNG Construction Leader

With the subject of liquefied natural gas (LNG) taking a leading role in the current Middle East conflict, LNG owners are hoping the higher prices stemming for lower supplies and high demand will stick around a while. In the U.S., contractor McDermott International is leading construction of the Golden Pass LNG joint venture in Texas and is responsible for the storage tanks at Venture Global LNG's Plaquemines facility in Louisiana. Canada provides the company the opportunity to head up another LNG project, while two McDermott-led LNG projects in Mozambique are getting off the ground as well, making the company a prominent construction player in the global LNG sector.

According to Industrial Info Resources data, McDermott is actively leading or involved in construction at four global LNG sites and is in line to head up work at another four sites in the future, although these are still subject to some uncertainty.

On-the-Ground McDermott LNG Construction

McDermott has been working for years on Golden Pass LNG's export facility in Sabine Pass, Texas, and that work is expected to wind down by the end of this year. Train 1 is completed and ramping up to full production of 6 million tons per annum (MTPA). This capacity is expected to double, then triple, when McDermott completes Train 2 in the coming months and Train 3 toward the end of this year. Industrial Info Resources puts the overall cost of the Golden Pass LNG project at more than $11 billion and has been tracking development of the facility since 2013. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

Industrial Info Resources also is tracking Venture Global LNG's Plaquemines LNG project in Louisiana. While McDermott isn't leading construction on the production trains, it is responsible for the engineering, procurement and construction (EPC) of the 200,000-cubic-meter LNG storage tanks at the site. By the end of the year, the first nine production modules are expected to begin the commissioning process, putting two of the storage tanks to work, to produce and distribute 13.6 MTPA of LNG. But construction of more trains and more storage already is underway to double the Plaquemines facility's production to 27.2 MTPA starting in late 2027.

While those two projects are on the U.S. Gulf Coast and well positioned for European markets, Asian markets are on the radar for a project on the Canadian Pacific Coast on which McDermott is taking the lead EPC role. The Woodfibre LNG project in British Columbia involves transforming a former pulp mill in Squamish into a two-train LNG production facility that will process approximately 220 million cubic feet per day of natural gas into 2.1 MTPA of LNG. For storage, the site will use a 250,000-cubic-meter floating storage and offloading (FSO) vessel moored to the shore. Subscribers can click here for more details on the project, which is expected to be completed in 2027.

McDermott also provided front end engineering design (FEED) work on Abu Dhabi National Oil Company's LNG export plant under construction in the United Arab Emirates, although timelines on this project, which began construction early last year, may be skewed by the ongoing conflict in the Middle East.

Future McDermott LNG Construction

Industrial Info Resources is tracking eight major LNG projects valued at $50.8 billion that are planned to begin at a future date that involve McDermott, and the largest of these are in Mozambique. Both Mozambique projects have put an end to years of force majeure status within the past several months, which was prompted by regional attacks from Islamic terrorists. These have been curtailed, prompting lead developers Exxon Mobil Corporation and TotalEnergies to restart work on the projects, although they remain some years from being fully developed.

McDermott is performing FEED work on ExxonMobil's Romuva project, which is progressing and on which ExxonMobil is expected to make a final investment decision in the second half of this year, suggesting construction could be underway by early 2027 on the 18-MTPA plant. Subscribers can click here to learn more about the project.

Earlier this year, TotalEnergies announced it was beginning work again on its nearby Mozambique LNG project, on which McDermott is acting as part of an EPC consortium along with Saipem and Chiyoda Corporation. TotalEnergies declared force majeure on the project for more than four years, but the two-train, 12-MTPA LNG plant could begin production by 2030. McDermott also is providing FEED work on the terminal jetty and offloading facilities. The 2,700-meter jetty will have five berths allowing the largest Q-Max (up to 266,000 cubic meters) and Q-Flex (165,000-216,000 cubic meters) size LNG carriers.

Other LNG projects await McDermott's services, including a floating storage facility at a Vietnamese regasification terminal and a floating LNG (FLNG) production facility in Australia.

Key Takeaways

• Industrial Info Resources is tracking US$73 billion worth of active LNG projects at eight global sites that involve McDermott International.
• McDermott is actively at work at LNG construction sites in Texas, Louisiana, British Columbia and the UAE.
• McDermott is in line to head up construction of two LNG projects in Mozambique that were under force majeure for years.
• McDermott's primary roles in LNG projects include heading up engineering, procurement and construction and providing front-end engineering design work.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).