Sempra Energy, the leading shareholder in the Cameron LNG project in Louisiana, has reached agreement with the engineering, procurement and construction companies, McDermott of the US and Chiyoda Corp., after delays and financial hits and expects the next two Trains to be completed in the first half of 2020.
McDermott and Chiyoda reached an agreement with Sempra subsidiary Cameron LNG for new performance-based commercial considerations related to the construction and commissioning schedule.
The three companies said that this accord further aligned the interests of all parties around the safe, timely completion of Phase 1 of Cameron LNG, a three-Train liquefaction and export project under construction in Hackberry.
Chiyoda had said the Cameron venture was a loss-maker for the Japanese company as the project went behind schedule because of bad weather on the Gulf Coast, a shortage of skilled workers and had additional costing issues.
The Cameron plant is located on the Calcasieu Ship Channel and is majority-owned by the California-based utility Sempra.
The other shareholders apart from Total are Japan’s Mitsui & Co. and Japan LNG Investment, a company jointly owned by Mitsubishi Corp. and shipping company NYK Line.
The carrier “Marvel Crane” lifted the first cargo from Train 1 at Cameron on May 31 and it was delivered to France.
The first phase of the Cameron project includes building the first three liquefaction Trains that will enable the export of around 12 million tonnes per annum of LNG, or about 1.7 billion cubic feet per day of natural gas.
The first Cameron cargo was loaded following a visit to the facility by US President Donald Trump.
“Commissioning of Train 1 at Cameron LNG continues to advance, and the first commissioning cargo was shipped from the facility earlier this year,” said Sempra.
“Consistent with previously disclosed timing, Train 2 and Train 3 are expected to begin producing LNG in the first quarter 2020 and second quarter 2020, respectively,” added the company.
“We believe it is reasonable to expect that the overall economics of Cameron LNG will not significantly change as a result of this agreement,” stated Sempra.
“Sempra’s projected share of full-year run-rate earnings from the first three trains at Cameron LNG continues to range between $400M and $450M annually,” it added.