Sempra LNG & Midstream today announced that Cameron LNG has reached a settlement agreement with its contractor, CCJV, related to the construction of the Cameron LNG liquefaction project in Hackberry, La. CCJV is a joint venture between an affiliate of Chicago Bridge & Iron Company N.V. (CB&I) and Chiyoda International Corporation.
The settlement resolves all of CCJV’s known and unknown claims to date, including Hurricane Harvey, and better aligns the interests of all parties in achieving the joint goal of having all three trains at Cameron producing liquefied natural gas (LNG) in 2019.
The settlement falls within the existing construction budget and financing commitments for Cameron LNG while including incentives for additional milestones. The settlement agreement is subject to the satisfaction of certain conditions that will reflect improvement to CB&I’s credit support to the project. Additional information concerning this settlement agreement is available in the Current Report on Form 8-K filed by Sempra Energy today with the Securities and Exchange Commission.
The $10-billion liquefaction facility comprises three liquefaction trains with an expected export capability of 12 million tonnes per annum of LNG or approximately 1.7 billion cubic feet per day. Earnings for Sempra Energy (NYSE: SRE) from Cameron LNG are expected to be between $300 million to $350 million in 2020 and increasing over time, primarily as a result of Cameron LNG’s debt being repaid.
Cameron LNG is jointly owned by affiliates of Sempra LNG & Midstream, ENGIE (formerly GDF SUEZ), Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2 percent of Cameron LNG.
Sempra LNG & Midstream leads Sempra Energy’s efforts to develop and build natural gas liquefaction facilities, integrated midstream natural gas infrastructure and natural gas storage and is a subsidiary of Sempra Energy, a Fortune 500 energy services holding company based in San Diego with 2016 revenues of more than $10 billion. The Sempra Energy companies’ more than 16,000 employees serve approximately 32 million consumers worldwide