McDermott International, Inc. recently announced that it and its joint venture member Chiyoda have reached an agreement with Cameron LNG related to the construction of its LNG liquefaction project in Louisiana.
The agreement includes the following key components: (1) Provides the opportunity for incentive bonus payments for achieving construction and commissioning milestones on specified dates for Trains 2 and 3; (2) Aligns the start dates for any schedule-related liquidated damages to be consistent with the current schedule; and (3) Fully aligns and strengthens the commitment of CCJV to complete the project in accordance with the current schedule.
McDermott and Chiyoda have provided the engineering, procurement, and construction for the Cameron LNG project. The project includes three liquefaction trains with a projected export capacity of more than 12 M tonnes per annum of LNG, or approximately 1.7 B cubic feet per day.
As previously disclosed, the project was approximately 90% complete as of the end of Q1 of 2019. The company expects initial production from Trains 2 and 3 in the Q1 of 2020 and the Q2 of 2020, respectively.