Nov 8 (LNGJ) - JGC Corp., the Japanese energy and LNG engineering contractor, said it had 220 billion yen ($1.93 billion) of outstanding LNG contracts at the end of the latest quarter, including Yamal LNG in Russia, the Coral FLNG project offshore Mozambique and the Ichthys LNG project in the Northern Territory of Australia. JGC said the Ichthys plant owned by Inpex Corp. of Japan and French major Total, was the subject of contract disputes that have gone to arbitration. JGC is part of a consortium with KBR of the US and Japanese firm Chiyoda Corp. that built the Ichthys plant. “Additional costs incurred due to the increase in service scope and other factors should be reimbursed by the client under the agreement,” said JGC. “Some parts of the costs are disputed by the client and these unsettled claims are currently the subject of an arbitration process,” added JGC.
Another Ichthys project dispute concerns costs incurred by JGC and its partners from taking over a combined-cycle, gas-fired power plant design and construction adjacent to the LNG plant from the original Australian subcontractor who walked away from its subcontract agreement. “Our claims regarding these costs are currently the subject of an arbitration process,” stated JGC.
