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CB&I and Chiyoda joint venture awarded LNG contract

LNG Industry,

CB&I and Chiyoda have announced that their joint venture has been awarded a contract worth approximately US$ 6 billion by Cameron LNG to construct the Cameron Liquefaction Project in Hackberry, Louisiana.

The scope of work includes engineering, procurement and construction (EPC) for the addition of natural gas liquefaction and export facilities to the existing LNG regasification facility. The Cameron Liquefaction Project will be comprised of three liquefaction trains with a nameplate capacity of approximately 13.5 million tpa of LNG.

LNG export approval

In February 2014, Cameron received conditional authorisation from the US Department of Energy (DOE) to export domestically produced LNG to non-FTA (free trade agreement) countries, including those in Europe and Asia.

CB&I’s CEO, Philip Asherman, commented: "With more than 50 years of experience in the LNG industry, CB&I has a long history of successfully executing LNG projects all over the world.

US Gulf Coast

"This new award builds on our strong presence along the US Gulf Coast, including Louisiana. This project will utilise a large number of engineering and construction craft workers, and we feel fortunate to be able to contribute to both the growth in jobs and the infrastructure in the state."

Shogo Shibuya, CEO of Chiyoda, added: "Chiyoda is a leading contractor for designing and constructing LNG plants, accounting for more than 40% of the world's total LNG production capacity.

North American LNG projects

"Chiyoda has been accelerating its involvement in the development of LNG projects in North America, based on its innovative plant design and world-class project execution capabilities, with a relentless drive for safety and contributing to the local community."

Sempra LNG is the lead company developing the Cameron Liquefaction Project. Company president, Octavio Simoes, commented: "The selection of CB&I and Chiyoda as contractors represents another significant milestone in the development of Cameron LNG liquefaction-export project.

Energy infrastructure

"The engineering, procurement and construction companies we've selected have the qualifications to build large liquefaction and energy infrastructure projects as well as a firm commitment to support our project's neighbours in southwest Louisiana."

The project will create approximately 3000 on-site jobs, in addition to several hundred jobs at CB&I's fabrication facilities in Louisiana and several hundred engineering and project management jobs in the company's Baton Rouge, Louisiana, office to support the design, fabrication and construction of the facilities.

Company interests

Subject to a final investment decision, finalisation of permits and securing financing, Sempra Energy will have a 50.2% interest in Cameron and the related liquefaction project. The remaining portion of Cameron and the related liquefaction project will be owned by affiliates of GDF Suez, Mitsubishi Corporation and Mitsui. Each will hold 16.6% stakes.

Adapted from press release by Katie Woodward

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