LNG

Chiyoda Corp., the Japanese LNG engineering company working on the Golden Pass project in Texas that has been hit by the bankruptcy of the US Zachry construction group, has had to take a hit on its earnings for the fiscal year just ended.

Chiyoda, based in Yokohama, Japan, said it was revising full-year consolidated financial forecasts and was publishing its earnings late.

Zachry Holdings, the lead contractor in the $10 billion project to transform the Golden Pass LNG terminal in Texas into an export plant, filed on May 8, 2024, for Chapter 11 bankruptcy protection.

Chiyoda said its earnings adjustments were because of the withdrawal of Zachry, one of the engineering partners, and amid efforts by Houston, Texas headquartered subsidiary, Chiyoda International Corp (CIC), to reorganise an operational structure with remaining partner, the McDermott unit CB&I LLC.

Earnings forecast

“Under the circumstances, the cost required to complete construction was forecast and recalculated with sufficient margin based on the currently effective contracts,” Chiyoda explained.

“Consequently, sales and operating income are expected to decrease from the previous forecast,” said Chiyoda.

Ordinary income is expected to drop to 5.5 billion Japanese yen ($34.5 million) from 28Bln yen ($175.37M) in the previous forecast.

This is down from the 20.32Bln yen ($127.2M) logged in the previous 2022-2023 fiscal year.

“Short-term and long-term plans to complete construction will be agreed among the three parties Chiyoda, CBI and the Golden Pass (GPX) project) soon after Zachry’s official and formal withdrawal from the project,” said Chiyoda.

Chiyoda stated that it would strive to successfully negotiate a contract with GPX and restore its equity capital by counting the contract money in its financial results to re-estimate reserves for losses on construction contracts in or after the fiscal term of the second quarter of the fiscal year 2024.

Chiyoda's secure finances

“Chiyoda’s cash and cash equivalents on its consolidated financial statements after the end of March 2024 up to the present day is about 100 billion yen ($627M) and there is no risk of harm to its business operations,” the company declared.

The Golden Pass liquefaction facilities are being constructed at the existing terminal located on the Sabine-Neches Waterway in Texas.

Three liquefaction Trains are planned with a combined nameplate capacity of around 16 million tonnes per annum of LNG.

ExxonMobil and QatarEnergy own 30 percent and 70 percent respectively of the venture.

The Train 1 mechanical completion had been scheduled for the end of 2024 and with first LNG in the first half of 2025.

Nov 21 (LNGJ) - TechnipFMC has agreed to sell the company’s measurement solutions business to One Equity Partners for $205 million in cash, subject to customary adjustments at the closing of the transaction. As part of TechnipFMC Surface Technologies segment, the measurement solutions business encompasses terminal management solutions and metering products and systems, and includes engineering and manufacturing locations in North America and Europe.

   “This transaction reflects TechnipFMC’s broader portfolio strategy to further focus on our core products and market-leading technologies, as well as integrated solutions and services for our clients,” said Doug Pferdehirt, Chairman and Chief Executive at TechnipFMC. The transaction is expected to close during the first half of 2024. 

McDermott International, the US energy and liquefied natural gas project engineering company, has reached support agreements with more than 75 percent of secured letter of credit facility providers, funded debt creditors and equity holders stemming from its several years of debt woes.

Venture Global LNG, the operator of the Calcasieu Pass export plant in Louisiana and developer of three other plants in the US Gulf Coast state, said it had successfully raised the roof of the second LNG storage tank at the Plaquemines LNG export project in Louisiana.

Venture Global, based in Arlington, Virginia, said the roof-raising was completed ahead of schedule and came just seven weeks after the roof-raising for tank one.

“This represents another major milestone in the construction of Plaquemines LNG, with both roofs now raised for the tanks serving Phase One,” said Michael Sabel, Chief Executive of Venture Global.

“With Phase One deep into construction and our recent final investment decision and full notice to proceed on Phase Two, Plaquemines is well positioned to be the next new major LNG capacity to reach the global market,” Sabel explained.

Four tanks

This is the second tank of four in total being constructed for Plaquemines, located on the banks of the Mississippi and south of New Orleans.

When operational each tank will be capable of storing 200,000 cubic metres of LNG.

“The roof weighs 900 tons and is 294 feet in diameter. Air raising allows for better and safer access as well as a faster construction schedule, as the roof can be erected concurrently with the shell. The tank dome was raised in 71 minutes using 0.3 psi of pressure underneath the roof,” the company said.

“It was raised from ground level to top of the wall height of 130 feet. Eventually, the tank will have an inner tank made from 9% nickel alloy and an outer wall and outer roof made from concrete to provide full containment of the LNG and provide the maximum level of resilience and safety,” added Venture Global.

The company’s existing export plant, the Calcasieu Pass facility in Cameron Parish in Louisiana, is located south of the city of Lake Charles and shipped its first cargo at the start of March 2022.

The Calcasieu Pass facility comprises 18 small-scale modular liquefaction Trains each with 0.626 million tonnes per annum of capacity and configured in 9 blocks for total nameplate output of 11.26 MTPA.

However, Venture Global has plans for more future output of about 60 MTPA of LNG export capacity.

The company’s three other projects, including the CP2 (Calcasieu Pass 2) venture, are each expected to have nameplate capacity of around 20 MTPA.

As well as the Plaquemines plant there is the Delta LNG project to be constructed on a 540-acre site also in Plaquemines Parish on the banks of the Mississippi.

Chiyoda Corp, the leading Japanese energy and LNG engineering company involved in projects worldwide, has announced that it will merge three group companies as part of a corporate overhaul and a re-organization of executives.

The company will merge Chiyoda Kosho Co., Chiyoda System Technologies and Chiyoda TechnoAce Co., to establish a company called Chiyoda X-ONE Engineering Corp.

Chiyoda is currently working on LNG engineering, procurement and construction projects in Qatar, the US and Nigeria.

The company is also executing the EPC phase of the North Field East LNG project, which is the expansion of four LNG Trains with capacity of 8 million metric tonnes per annum.

In the US, the main EPC focus of the company is the Golden Pass LNG project being developed by QatarEnergy and ExxonMobil.

Core business

The new “Chiyoda X-ONE Engineering Corp.” will be based at its Koyasu Office and Research Park in Yokohama as of 1 April 2023.

Chiyoda said that the name of the new company includes “Engineering” as its core business and “X-ONE” in reference to the combination of Transformation (X) by “One Team” .

Following the merger, Chiyoda Kosho Co. will operate as the company's “Energy, Environment & Maintenance Business Division”, Chiyoda System Technologies Corp. will function as its “Instrumentation & Electrical Solutions Business Division” and Chiyoda TechnoAce Co. Ltd will operate as its “Life Science Business Division”.

“The company is committed to optimizing the technological capabilities, experience and track record accumulated by the three organizations to progress as a sustainable leading integrated engineering contractor,’ said Chiyoda.

Chiyoda X-ONE Engineering Corp. will be under President Taku Ito, while a Chief Executive will be appointed to the new entity.

“Prior to the merger, Chiyoda will reorganize its plant operation and maintenance solution and digital transformation business organizational functions to launch a new ‘O&M Transformation Solution Business Department’ as of 1 January 2023,’ explained Chiyoda.

“Chiyoda will collaborate with the company, other Group companies and business partners in implementing its growth strategy in the new business portfolio innovations of life science, next-generation power systems, carbon neutrality and plant operation and maintenance solutions, as well as traditional energy sectors,” stated Chiyoda.

“While continuing to contribute to resolving society’s challenges, Chiyoda is proactively responding to changes in the business environment and aiming to strengthen as a consolidated group,” it added.

US LNG exporter Venture Global has received permission from regulators to commission liquefaction blocks five and six at the Calcasieu Pass LNG export plant in Louisiana.

The Calcasieu Pass plant in Cameron Parish in Louisiana, south of the city of Lake Charles, shipped its first cargo at the start of March 2022.

Calcasieu Pass comprises 18 small-scale modular liquefaction Trains each with 0.626 million tonnes per annum of capacity and configured in 9 blocks for total nameplate output of 11.26 MTPA.

Using modular Trains that were built in Italy and shipped to Calcasieu Pass to be installed, Venture Global was able to cut construction costs and to bring forward the start-up schedules.

After the latest FERC authorisation for blocks five and six, the project will be two-thirds complete.

Success

“Given the success of (previous) commissioning operations, Calcasieu Pass respectfully requests authorization to place Blocks 5-6 in service,” said the request from Venture Global which was granted by FERC.

In total, Venture Global has about 70 MTPA of LNG export capacity under construction or development in Louisiana.

The Arlington, Virginia-based company’s three other projects are each expected to have nameplate capacity of around 20 MTPA.

Two of the other plants are called Plaquemines and Delta LNG and are on the banks of the Mississippi River south of New Orleans.

The fourth project, called CP2 LNG, will be built on a 540-acre site in Cameron Parish, adjacent to the existing Calcasieu Pass facility.

Venture Global has host of long-term agreements with customers for its various projects.

The list includes Shell, BP, Chevron, ExxonMobil, Italy's Edison, Portugal's Galp, Spain's Repsol, Polish Oil and Gas Company, Chinese major Sinopec, German utility EnBW and Malysia's Petronas.

Cheniere Energy said it had initiated a planned lump sum, turnkey, engineering, procurement and construction contract with US LNG and energy engineering firm Bechtel Inc. for the Corpus Christi LNG plant expansion.

Cheniere Energy has announced the “substantial completion” of Train 6 at the Sabine Pass liquefaction plant in Cameron Parish in Louisiana and formally taking nameplate capacity to 27 million tonnes per annum.

“Commissioning is complete and Cheniere’s engineering, procurement and construction partner, Bechtel Oil, Gas and Chemicals has turned over care, custody and control of Train 6 to Cheniere Energy Partners LP,” said a statement from the Houston, Texas-based company.

“With the achievement of substantial completion, financial results of LNG sales from Train 6 going forward will be reflected in the statement of operations of Cheniere Partners and its applicable affiliates,” added the company.

The work on Cheniere’s Sabine Pass Train 6 started in June 2019 and the peak workforce on the project reached 1,800 workers who installed 12,250 tons of steel, poured 48,500 yards of concrete and laid 2,500,000 feet of cable.

“The accelerated completion of Train 6 once again reflects the world-class standard of execution consistently achieved by the Cheniere and Bechtel teams, and we are proud to have the six-Train vision of Sabine Pass completed safely, ahead of schedule and on budget,” said Jack Fusco, Chairman, President and Chief Executive of Cheniere Partners.

Nine Trains

“With nine total Trains across both the Sabine Pass and Corpus Christi projects, the Cheniere liquefaction platform is the second largest in the world, reliably providing our global customer base with clean, secure and affordable energy,” explained Fusco.

“We look forward to opportunities to build upon our platform with disciplined, brownfield growth at both sites in the future,” stated the CEO.

Brendan Bechtel, Chairman and CEO of Bechtel, said Cheniere plays a vital role in delivering reliable and safe energy to communities around the world.

“For us to be involved in supporting the development of these extraordinary projects is a great source of pride and we’re honored to help bring Cheniere’s vision to reality,” declared the Bechtel Chairman.

Cheniere Partners also owns the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines.

Cheniere can now turn its focus to the Texas Corpus Christi plant expansion, known as Stage 3 and comprising the construction of seven mid-scale liquefaction Trains adjacent to the existing facility.

The mid-scale Trains will add nameplate capacity of almost 10 MTPA to the 13.5 MTPA from the three larger existing Corpus Christi Trains, each producing 4.5 MTPA.

Cheniere is aiming to reach a final investment decision on the Texas plant expansion project in 2022.

Sempra Energy has been communicating with the US Federal Energy Regulatory Commission to make sure certain final design enhancements for the already approved fourth liquefaction Train at the Cameron LNG plant in Louisiana will not be subject to any pre-filing processes.

Sempra said it had requested a determination from the Director of the Office of Energy Projects in November 2021 that the scope of the amendment would not be caught up in new regulatory hold-ups.

Cameron LNG has since provided additional information regarding the scope of the altered design.

The company emphasized that the prospective modifications to the previously-approved Train 4 project as proposed by the amendment will not “involve significant state and local safety considerations that have not been previously addressed”.

These include the addition of LNG storage tanks, increasing throughput requiring additional tanker arrivals or the use of larger vessels.

Sempra stated that the proposed design enhancements for Train 4 would not alter or impact the existing marine facilities and would not change Cameron LNG’s current Waterway Suitability Assessment (WSA).

Coast Guard

The company said it had engaged with the United States Coast Guard regarding the proposed amendment and the USCG had determined that Cameron LNG was not required to submit a new “Letter of Intent” or revision to its current WSA for the amendment.

While some parts of the design have been enhanced, others have been withdrawn.

Importantly, there is the removal of the construction of a fifth Train and associated utilities and condensate storage tanks permitted with the original expansion permit.

One of two boil-off gas compressors previously permitted would not be needed and the construction will be wholly within the footprint authorized by the FERC.

However, Sempra noted that the expansion amendment would include about a dozen other design enhancements and additions for Train 4.

Among them are the addition of a feed-gas booster compressor to increase feed-gas pressure to Train 4, a propane refrigeration package to cool the dehydration unit feed gas within Train 4 and the use of “open art technology” on the NGL extraction process in lieu of a proprietary process. 

TechnipFMC, the energy projects and subsea company, said its Technip Energies division had third-quarter revenues of $1.60 billion and benefited from the continued ramp-up of Novatek’s Arctic LNG II joint venture in Russia and gave updates on other projects.