McDermott, Chiyoda announce LNG liquefaction project agreement with Cameron LNG
McDermott announced 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 provides the opportunity for incentive bonus payments for achieving construction and commissioning milestones on specified dates for Trains 2 and 3. The agreement also aligns the start dates for any schedule-related liquidated damages to be consistent with the current schedule and aligns the commitment of CCJV to complete the project in accordance with the current schedule. The favorable financial impact of the agreement is incorporated in McDermott's previously issued guidance for 2019. Since the initial award in 2014, 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 12M tonnes per annum of LNG, or approximately 1.7B cubic feet per day. As previously disclosed, the project was approximately 90% complete as of the end of Q1. The company expects initial production from Trains 2 and 3 in Q1 of 2020 and Q2 of 2020, respectively.