Cameron LNG, the liquid natural gas export facility in Hackberry, Lousianna majority owned by Sempra LNG, dropped some details Friday on the timelines for its two developing liquefaction trains in an announcement about incentives with its construction partners.
The company previously had said it would have three trains as a part of its first phase operating in 2020, but said in a Friday morning press release that Train 2 and Train 3 would be producing liquid natural gas for export by the first quarter and second quarter of 2020, respectively.
The company shipped out its first load of cargo from the $10 billion facility at the end of May aboard the Singapore-flagged tanker Marvel Crane.
It also announced an agreement it recently struck with McDermott International and Chiyoda International to incentivise keeping the project on track during a highly competitive construction labor market.
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McDermott and Chiyoda stand to make bonus payments for achieving construction and commissioning milestones for Trains 2 and 3, which McDermott has already included in its 2019 guidances.
“We have really strengthened our relation with Sempra and with the other owners of Cameron,” David Dickson, president and CEO for McDermott International, said in a late April investors call. “And we've also demonstrated now for a few months that we are -- we've got our arms around the project.”
The agreement will mean both Sempra and investors can have more assurance that the first phase of construction will stay on schedule and have fewer budget overages.
Sempra added that it believed the agreement wouldn’t affect projected profits for the project.
“Sempra Energy's projected share of full-year run-rate earnings from the first three trains at Cameron LNG continues to range between $400 million and $450 million annually,” the company said in the Friday statement.
Cameron LNG is jointly owned by Sempra LNG, Total, Mitsui & Co. and a joint venture between Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha. Sempra Energy technically has the majority investment with an indirect ownership of 50.2% of Cameron LNG.
The Cameron LNG expansion isn’t the only large-scale job McDermott and Chiyoda will be focused on in the region.
A joint-venture group of McDermott, Chiyoda International Corporation and Zachry Group will be handling the estimated $10 billion Golden Pass LNG project created through a joint venture of Exxon Mobil and Saudi Aramco. That facility is expected to begin operations by at least 2024.
When completed, the Phase 1 project at Cameron LNG is expected to add 12 million tons of liquid natural gas to the facility’s yearly export capacity.
Cameron LNG Phase 2 has already been approved by the Federal Energy Regulatory Commission and will add two liquefaction trains and up to two additional storage tanks. It is also in the early stages of a Port Arthur LNG facility and two phases of an export facility in Mexico.