Former Golden Pass LNG contractor Zachry nears exit from bankruptcy

According to court filings, the US Bankruptcy Court for the Southern District of Texas approved Zachry Holding’s reorganization plan on Friday.

A hearing to confirm the plan is scheduled to take place on February 26, 2025.

Several reports said, citing a Zachry Holdings statement, that the firm expects to complete the bankruptcy process by the first quarter of 2025.

Zachry said on May 21, 2024, that it filed for bankruptcy, initiating a structured exit from the Golden Pass LNG export project due to “financial challenges” related to the construction of the facility.

This was the most-read article on LNG Prime in 2024, as the move affected thousands of jobs at the giant Golden Pass LNG export facility, owned by state-owned QatarEnergy and US firm ExxonMobil.

More than two months after the announcement, Zachry announced in July that the US Bankruptcy Court for the Southern District of Texas had approved its settlement agreement with Golden Pass and its joint venture partners CB&I and Chiyoda International.

“The comprehensive settlement agreement fully resolves all financial and legal disputes among the parties related to the Golden Pass export terminal project in Sabine Pass, Texas,” it said.

Also, the settlement allows Golden Pass to resume construction on an “expedited basis” while Zachry will exit the project in an “efficient and cooperative manner”, the company said at the time.

In November last year, Japan’s Chiyoda and US-based CB&I reached a deal with Golden Pass LNG to complete the construction of the first liquefaction at the giant LNG export plant in Texas.

“CB&I and CIC, and Golden Pass LNG Terminal will continue engagements on subsequently amending the contract for the completion of Trains 2 and 3 and will disclose promptly when we conclude such agreement,” Chiyoda said at the time.

QatarEnergy owns a 70 percent stake in the Golden Pass LNG project with a capacity of more than 18 mtpa and will offtake 70 percent of the capacity, while ExxonMobil has a 30 percent share.

Golden Pass LNG expects to launch the first train at the end of this year.