McDermott International and joint venture (JV) member Chiyoda have signed an agreement with Cameron LNG towards the construction of its LNG liquefaction project in Louisiana, US.
The agreement offers the opportunity for incentive bonus payments for achieving construction and commissioning milestones for liquefaction trains 2 and 3.
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The transaction aligns the start dates for any schedule-related liquidated damages to be consistent with the current schedule, under the terms of the agreement.
It also fully aligns and strengthens the commitment of CCJV, a JV between McDermott and Chiyoda, to complete the project in accordance with the current schedule.
CCJV is the engineering, procurement and construction (EPC) contractor for the Cameron LNG liquefaction project.
McDermott international projects senior vice-president Samik Mukherjee said: “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 JV project team has made tremendous progress, including first liquid and first cargo from Train 1.
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By GlobalData“We are extremely pleased with the agreement, which is a testament to the progress and the strong performance of our project team.”
Initially awarded to McDermott and Chiyoda in 2014, the project includes three liquefaction trains with an estimated export capacity of more than 12Mtpa of LNG, or approximately 1.7bcf/d.
It was approximately 90% complete as of the end of the first quarter of this year, McDermott said.
The company plans initial production from trains 2 and 3 in the first and second quarter of next year, respectively.
