CB&I Announces Settlement Agreement with Cameron LNG
Source: www.gulfoilandgas.com 12/19/2017, Location: North America
CB&I (CBI) has reached a settlement agreement with Cameron LNG relating to the three-train LNG liquefaction project in Hackberry, Louisiana. CB&I is constructing the project through CCJV, a joint venture with Chiyoda International Corporation.
"This settlement with Cameron LNG marks an important milestone in resolving all past commercial issues and aligning all parties toward the successful completion of the project," said Patrick K. Mullen, CB&I's President and Chief Executive Officer. "We appreciate the collaboration of Cameron LNG and look forward to their continued support as we move forward with the safe and on-time completion of this significant energy infrastructure project."
The settlement resolves all known and unknown claims to date (including impacts from Hurricane Harvey) and includes the following key components:
Resolves all past commercial issues and increases the certainty of the project schedule, which has all three liquefaction trains producing LNG in 2019
Provides incentive bonus payments related to expedited project completion
Waiver of any schedule-related liquidated damages related to the original contract and reestablishment of liquidated damage start dates according to the settlement