Japan’s Chiyoda provides Golden Pass LNG update

Japan’s engineer Chiyoda has released an update regarding the construction of the Golden Pass LNG export project in Texas, owned by QatarEnergy and ExxonMobil, after US construction company Zachry Holdings filed for bankruptcy.

State-owned QatarEnergy owns a 70 percent stake in the three-train Golden Pass LNG 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 contract to build the tree Golden Pass trains worth more than $10 billion next to the existing LNG import terminal.

However, Zachry said on May 21 it has 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.

Chiyoda said in a statement released on Wednesday that Golden Pass LNG Terminal (GPX) has filed motions on June 18 requesting Zachry’s withdrawal from the project and for lifting the automatic stay to resume construction work of the first train.

The court will make a final decision regarding Zachry’s withdrawal from the project after hearings, it said.

Discussions about a short-term execution plan and a long-term execution plan of the project among Golden Pass LNG, CB&I, and Chiyoda’s unit CIC have been continuing in preparation for Zachry’s official withdrawal from the project, according to the firm.

Chiyoda said that Golden Pass LNG has already been carrying forward payment procedures for safety-related tasks or infrastructure development tasks required for continuing local construction work as well as other tasks specific to CB&I and CIC.

“No financial burden on such tasks has been imposed on CIC,” the company said.

Chiyoda did not provide further information.

75 percent complete

Golden Pass LNG previously told LNG Prime that work continues on the project with McDermott and Chiyoda, the other two parties to the EPC contract, with thousands of workers on site.

“The project is already 75 percent progressed and we are committed to completing the project,” it said.

Golden Pass LNG said that it does not have updates at this time regarding the construction timeline of the project.

According to a recent report by the US FERC, the anticipated in-service timing for the pipeline expansion project is expected “sometime in the first half of 2025”.

“The lead construction contractor for the export terminal project declared bankruptcy on May 21, 2024, which may impact completion timelines,” it said.

The regulator said in a previous report that the anticipated in-service timing for the pipeline expansion project “is expected sometime prior to the second half of 2024”.

The FERC did not provide the timing for the liquefaction trains in the newest report.

ExxonMobil previously said that “train 1 mechanical completion is expected at the end of 2024 with first LNG in first half of 2025.”

LNG Prime previously also contacted Zachry to provide additional info regarding reports that it has laid off more than 4,000 Golden Pass LNG workers following the recent Chapter 11 process, but we did not receive a reply.

According to a list of WARN notices with the Texas Workforce Commission, Zachry Industrial will lay off 4,410 workers.

Most Popular

GTT develops new LNG fuel tank

French LNG containment giant GTT has developed a new cubic-shaped LNG fuel tank for commercial vessels, with a particular focus on LNG-fueled container vessels.

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

HD Hyundai Heavy, DNV to work on new LNG carrier design

South Korean shipbuilder HD Hyundai Heavy Industries has signed a memorandum of understanding with classification society DNV to collaborate on the development and verification of an optimized 200,000 cubic meter LNG carrier.

More News Like This

McDermott bags Monkey Island LNG gig

Houston-based McDermott has secured a contract from Monkey Island LNG for its planned natural gas liquefaction facility in Cameron Parish, Louisiana.

Golden Pass gets OK to place MP 33 compressor station in service

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, has secured approval from the US FERC to place into service its MP 33 compressor station, as it continues to move forward with commissioning activities at its three-train LNG plant in Texas.

Chiyoda scores contract for third Hibiki LNG tank

Japanese engineering firm Chiyoda has secured a contract from compatriot Saibu Gas to build the third liquefied natural gas (LNG) storage tank at the latter's Hibiki regasification terminal in Kitakyushu.

Inpex launches Abadi LNG FEED work

Japan's Inpex has launched the front-end engineering design (FEED) work for the Abadi LNG project in Indonesia. The contractors include Technip Energies, JGC, Saipem, Tripatra, McDermott, and Worley.