Settlement moves Cameron LNG closer to production by 2019
Published 7:00 pm Thursday, December 21, 2017
Officials with Cameron LNG expect all three liquefaction trains to start producing at its Hackberry site by 2019, thanks to a settlement agreement reached between them and CCJV, a joint venture between the project’s general contractors.
The agreement, announced Tuesday, resolves claims made by CCJV “related to project schedule extensions,” Anya McInnis, a public affairs official with Cameron LNG, said in an email. She said the extensions “are not uncommon for a project of the size and scope of Cameron LNG.”
The project encountered several delays since construction began in 2014. McInnis said they included “heavy and frequent rains,” Hurricane Harvey’s landfall earlier this year and other interruptions.
Construction of the three liquefaction trains was expected to wrap up in 2018, but officials announced a six-month delay in August that pushed the end date to 2019. McInnis said there was some concern that the second and third liquefaction trains would not be producing by 2019.
McInnis said the settlement agreement allows CCJV to move forward with the project “on a timely manner.” CCJV was created by Chicago Bridge & Iron Company and Chiyoda Corporation.
Cameron LNG CEO Farhad Ahrabi said in a news release that settlement agreement allows CCJV to focus “on the safe and successful completion of the project.”
McInnis said the settlement falls within Cameron LNG’s existing construction budget and financing commitments and includes “incentives for additional milestones.”
Any scheduled liquidated damages associated with the original contract were waived with the settlement, and new liquidity damages were created according to the new agreement.