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McDermott comments on cost position of Cameron LNG project

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LNG Industry,

McDermott International Inc. has released a statement reiterating the position it announced on 29 April 2019, that its Cameron LNG project did not experience any material change in its cost position in 1Q19.

The company’s statement reportedly comes in response to an announcement that was made on 6 May by Chiyoda Corp. – McDermott’s joint venture (JV) partner in executing the contract – that Chiyoda had recorded an unquantified change in estimate on the Cameron project in 1Q19, along with charges on other projects, pending arbitration cases and other matters.

McDermott claims that it is not involved in Chiyoda’s new Strategy & Risk Integration Division, which was mentioned in its news release.

Over the course of the last year, through the company’s active management of the project, McDermott claims that it has strengthened leadership, oversight, execution, forecasting and reporting. In addition to this, more recently, McDermott has taken an expanded role in the commissioning activities. The company claims that this expanded oversight has given it additional leverage to drive the project forward through the commissioning process.

McDermott and Chiyoda are developing the project under a 50:50 JV arrangement. The Cameron LNG project is currently being built in Hackberry, Louisiana, US. It is a world scale facility that features proven technology designed to produce nearly 14 million tpy of LNG. Last month, Train 1 of the project reached the final commissioning stage. According to the statement, this included the introduction of pipeline feed gas into Train 1 of the liquefaction export facility, the precursor for the production of LNG, which is expected by mid May. As of the end of 1Q19, the Cameron project was approximately 90% complete.

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