Sempra Says Cameron LNG Dispute Settled

Cameron LNG has reached a settlement agreement with its contractor over the construction of the liquefaction and export project in Hackberry, Louisiana.

The announcement was made December 19 by Sempra LNG & Midstream, the majority 50.2% shareholder in Cameron LNG.

The contractor involved, CCJV, is a joint venture between an affiliate of US firm Chicago Bridge & Iron Company (CB&I) and Japanese LNG specialist contractor Chiyoda.

“The settlement resolves all of CCJV's known and unknown claims to date, including Hurricane Harvey, and better aligns the interests of all parties in achieving the joint goal of having all three trains at Cameron producing LNG in 2019,” said Sempra LNG & Midstream, a unit of US firm Sempra Energy, adding: “Settlement falls within the existing construction budget and financing commitments for Cameron LNG while including incentives for additional milestones.  The settlement agreement is subject to the satisfaction of certain conditions that will reflect improvement to CB&I's credit support to the project.”

Sempra admitted for the first time August 2017 that start-up of the Cameron LNG project would slip from 2018 into 2019 but that it expected the three-train complex to be fully open by 2020.

Cameron LNG is jointly owned by Sempra LNG & Midstream, French utility Engie, Japan's Mitsui, and the Japan LNG Investment joint venture of Japanese partners Mitsubishi Corp and shipowner NYK Lines. The $10bn project -- located at what was originally an LNG import terminal near Hackberry, Louisiana -- will comprise three liquefaction trains each of 4.5mn mt/yr capacity (totaling 13.5mn mt/yr). Cameron LNG has also begun a filing process to add two additional trains (4 & 5).

CB&I announced in the last 24 hours that it plans to merge with McDermott creating a $6bn new company.