LNG

Japanese companies JGC Corp. and Chiyoda Corp. and US engineer KBR who built the onshore Ichthys liquefaction and export plant at Bladin Point near Darwin in Australia, have lost a Court of Appeal case for a US$1.9 billion claim against a power station sub-contractor.

Australian contractor Cimic, previously called Leighton Holdings, has pulled a newly acquired company out of finishing work on a power station for the Ichthys LNG export project under construction near Darwin in the Northern Territory and scheduled to come on stream in September 2017.

Australian energy and liquefied natural gas engineering group Cimic, better known by its former name of Leighton Holdings, is making a takeover bid for Sydney-based construction rival UGL worth A$524 million (US$400M) as the industry runs out of LNG projects.

The Australian CIMIC Group, previously known as Leighton Holdings, said it had started legal proceedings in the United States against Chevron Corp. and US engineering company KBR Inc. in a financial dispute involving a A$1.86 billion (US$1.4Bln) contract for the Gorgon LNG plant in Western Australia.

Australian engineering company CIMIC Group said its disputed claim linked to cost over-runs on the construction of a 2.1-kilometres jetty at Chevron Corp.’s Gorgon LNG project on Barrow Island exceeds A$2 billion (US$1.44bln).