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McDermott offers comment on Cameron LNG project

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LNG Industry,


McDermott International, Inc. has released a statement commenting on its assessment of the financial position of the Cameron LNG project as of the end of 4Q18.

McDermott’s comment follows the release on 13 February 2019 of quarterly financial results by Chiyoda Corp. – a member of the joint venture (JV), along with McDermott, working on the project. For 4Q18, McDermott expects to report an adverse change in estimate of approximately US$168 million, due to unfavourable labour productivity, as well as increases in subcontract, commissioning and construction management costs. According to the statement, the change in estimate is expected to affect the company’s statements of operations for the three months and year ended 31 December 2018. McDermott and Chiyoda are executing the project under a 50:50 JV arrangement and are fully aligned at the JV level regarding the change in estimate.

The Cameron LNG project is currently being built in Hackberry, Louisiana, US. It will be a world scale facility that features proven technology designed to produce nearly 14 million tpy of LNG. Operationally, the project is on track to reach a major milestone with feed gas into the facility later this quarter, with construction continuing to progress well. The gas turbine solo run was completed ahead of schedule, cold circulation of hot oil in Train 1 was completed during the quarter and flare ignition testing was successfully completed on all flares. All of these are crucial steps in the commissioning of Train 1.

McDermott expects to report its results for the fourth quarter of 2018 on February 25, 2019.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14022019/mcdermott-offers-comment-on-cameron-lng-project/

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