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Chiyoda announced on Tuesday that the JV partners have reached an agreement with Golden Pass LNG Terminal regarding an amendment to the engineering, procurement, and construction (EPC) contract to complete the project.
This new deal follows a binding term sheet Chiyoda and McDermott signed in June with Golden Pass LNG to complete the construction of the second and third liquefaction units.
The term sheet included payment terms based on reassessment of the allocation of responsibilities regarding future cost burdens.
Chiyoda said that an agreement has been reached on more detailed terms and the JV partners officially signed a revised EPC contract with Golden Pass LNG on November 13 (US time).
“We already recorded a provision for the estimated costs to complete the project in the financial results for the fiscal year ended March 2024,” Chiyoda said.
Chiyda said that the company will “further examine the details of the revised provisions and impacts on profitability and will make any adjustments for prompt announcement based on disclosure standards for performance forecasts when it becomes possible to calculate profit and loss.”
“We will continue to fully leverage our problem-solving capabilities and project management skills, working in close collaboration with GPLNG and MDR to ensure the successful completion of the project,” it said.
Zachry exit
State-owned QatarEnergy owns a 70 percent stake in the three-train Golden Pass project with a capacity of more than 18 mtpa and will offtake 70 percent of the capacity, while US energy firm ExxonMobil has a 30 percent share.
A joint venture of Chiyoda, McDermott’s CB&I, and Zachry won the EPC contract to build the three Golden Pass trains worth about $10 billion next to the existing LNG import terminal in the vicinity of Sabine Pass, Texas.
However, Zachry Holdings said in May last year that it had filed for bankruptcy, initiating a structured exit from the Golden Pass LNG export project due to “financial challenges” related to the facility’s construction.
In November 2024, Chiyoda and CB&I reached a deal with Golden Pass LNG to complete the construction of the first liquefaction at the LNG export plant.
After that, Houston-based McDermott completed the sale of its CB&I storage business to a consortium of financial investors led by New York-based Mason Capital Management.
Golden Pass to launch first train
Golden Pass LNG recently received approval from the US FERC to introduce fuel gas into the first train, as it continues to move forward with commissioning activities at its three-train LNG plant in Texas.
ExxonMobil CEO Darren Woods also said that the Golden Pass LNG export project remains on track to produce first LNG volumes by the end of this year.
Last month, Golden Pass LNG sought approval to place into service its MP 69 compressor station.
Before that, FERC granted approval to GPPL to place into service its MP 33 compressor station.
Additionally, Golden Pass has secured approval from the US DOE to export previously imported LNG from October.
The JV requested that DOE’s Office of Fossil Energy and Carbon Management issue an order granting GPLNG to engage in short-term exports of up to 50 Bcf of LNG, on a cumulative basis, that will have been previously imported into the US from foreign sources.
The LNG supplies will either be re-exported or regasified to be used as fuel gas at the facility.
Golden Pass LNG said in an update on October 29 that it will be receiving a cooldown cargo arriving in early December with off-loading taking place thereafter.
“This is a normal part of our planned commissioning and start-up activities as we work towards first LNG and begin to deliver clean energy from Texas to power the world,” the JV said.