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McDermott, Chiyoda introduce feed gas to Cameron LNG Train 2
PROJECTS & COMPANIES
MCDERMOTT International and Chiyoda International, the joint venture engineering, pro- curement and construction (EPC) contractors on the Cameron LNG export project in Louisi- ana, have introduced feed gas to the second train at the terminal. Train 2 is now at its nal com- missioning stage.
Progress on bringing the second train online has come a er considerable delays in starting up the rst train at Cameron, which is majority owned by Sempra Energy. e other partners in the terminal are Total, Mitsui & Co. and Japan LNG Investment – a joint venture between Mit- subishi and Nippon Yusen Kabushiki Kaisha (NYK).
Sempra had initially been aiming to start up all three Cameron trains this year, but construc- tion and weather-related delays have pushed the in-service date of the second and third trains into 2020.
In July Cameron LNG reached an agreement with McDermott and Chiyoda that included incentives for the contractors to reach construc- tion and commissioning milestones on Trains 2
and 3 by speci ed dates.
Feed gas was introduced to Train 1 on April
15 this year, followed by rst liquid on May 14 and the rst cargo from the train on May 31. On August 19, Cameron LNG announced that Train 1 had begun commercial operation, following its substantial completion.
e third train at the facility remains under construction.
The start-up of new trains at LNG export terminals on the US Gulf Coast and elsewhere is contributing to a global supply of the super- chilled fuel, however. Last month it was reported that Singapore-based Pavilion Energy had can- celled a cargo it had been due to load at Cameron LNG. However, industry sources told Reuters that Pavilion had still agreed to pay for the cargo. The news service reported that other buyers were also considering cancelling cargoes, but still paying for them, under the terms of take-or- pay contracts they had signed. is has not been con rmed, but would be unsurprising given full inventories of gas in storage and lagging demand growth globally.
Lake Charles LNG tender released
PROJECTS & COMPANIES
ENERGY Transfer announced on December 3 that a commercial tender package had been released for the Lake Charles LNG project, which it is proposing to build in partnership with Royal Dutch Shell. e package has been issued to engineering, procurement and construction (EPC) contractors, asking them to submit nal commercial bids for the proposed liquefaction project.
e scheme involves converting the existing Lake Charles import terminal in Louisiana and building 16.45mn tonnes per year (tpy) of liq- uefaction capacity. Energy Transfer and Shell expect to receive bids in the second quarter of 2020.
e commercial tender invites EPC contrac- tors to develop a comprehensive commercial bid for the lump-sum turnkey (LSTK) contract. e bid would be based on a fully developed scope related to design, engineering, technical and safety speci cations for the construction, com- missioning and start-up of the project, Energy Transfer said in a statement. It also requires the contractors to submit a fully developed execu- tion plan and completion schedule.
e release of the commercial tender follows an invitation to tender (ITT) that was announced
in May, Energy Transfer added. e ITT focused on the technical scope of project – the contrac- tors’ veri cation of the engineering and design of the proposed liquefaction plant.
“ is is an important step in the continued development of this LNG project with Shell,” said Energy Transfer LNG’s president, Tom Mason. “ is project capitalises on repurposing existing brown eld regas assets to achieve cost savings in the construction of the liquefaction facility. e project will also bene t from the unique strength of Energy Transfer as a leading natural gas pipe- line operator with extensive connectivity to the Lake Charles facility,” he added.
“ e commercial tender represents another important milestone in our phased approach to developing a credible and safe LNG pro- ject for Shell and Energy Transfer,” added Shell’s vice-president of Lake Charles, Frederic Phipps.
Shell will act as the project lead on Lake Charles LNG prior to a nal investment deci- sion (FID) being taken on the facility. If it is sanctioned, Shell will also be the construction manager and operator of the facility. Energy Transfer will act as site manager and project co-ordinator prior to an FID being taken.
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w w w . N E W S B A S E . c o m Week 48 05•December•2019
