USA: Cameron LNG export project facing delays

The completion of three liquefaction trains currently under construction at Sempra Energy’s Cameron LNG project in Louisiana could be delayed for months, according to chief executive Debra Reed.

CCJV, the project’s engineering, procurement and construction (EPC) contractors, last week, “gave an indication that the project is facing delays,” Reed said during a third-quarter results conference call on Wednesday.

CCJV, a joint venture between CB&I and Chiyoda, did not give any official cause for the delay but they did indicate that there had been rain and flooding at their Baton Rouge, Louisiana facility, she added.

Cameron JV has originally expected all three trains to be in service by the end of 2018.

According to Reed, due to the delay, the first train is now expected to be online by mid-2018 with the second train scheduled to start up by late 2018 and the third train to follow in mid-2019.

“We are disappointed with the delay.” However, under the construction deal with Cameron JV and CCJV, the contractor retains responsibility and control of the project’s schedule, Reed said.

“The good news is that the EPC contract does provide for liquidated damages for certain delays. Those damages would be factored in the tariff and would alleviate some of the impacts to Cameron’s customers.”

Sempra and its partners in the Cameron LNG export project are currently building the first three liquefaction trains with a nameplate capacity of 13.9 million tons per annum.

The JV partners are also planning to expand the facility to include up to two additional liquefaction trains raising the project’s capacity to 24.92 Mtpa,

Speaking of further expansion of the LNG export project, Reed said that one of the partners did not agree to invest additional capital.

“Discussions among the partners have been going on for several months, and we are considering a variety of options that may result in a clearer path to an expansion,” she added.

Cameron LNG is a joint venture owned by affiliates of Sempra Energy, Engie, Mitsui & Co. and Japan LNG Investment, a joint venture formed by affiliates of Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha.

LNG World News Staff