CB&I, Chiyoda awarded $6 billion contract; Sempra to hold 50% ownership


03 19, 2014 by By Renita D. Young, NOLA.com | The Times Picayune

The $6 billion contract will include procurement, engineering and construction of natural gas liquefaction and export facilities that will be added to the existing LNC regasification facility. It's expected to create about 3,000 on-site jobs including several hundred jobs at CB&I's fabrication facilities in Louisiana. Additionally, officials expect several hundred engineering and project management jobs at its Baton Rouge office that will support design, fabrication and construction of the new facilities.

Netherlands-based energy infrastructure company Chicago Bridge & Iron Co. (CB&I) and Chiyoda International Corp., a Japan-based contractor that designs and constructs LNC plants, announced that they were contracted by Cameron LNC, LLC to construct the Cameron Liquefaction Project in Hackberry, La.

"The selection of CB&I and Chiyoda as contractors represents another significant milestone in the development of Cameron LNG liquefaction-export project," said Octavio M. Simoes, Sempra LNG's President. "The engineering, procurement and construction companies we've selected have the qualifications to build large liquefaction and energy infrastructure projects as well as a firm commitment to support our project's neighbors in southwest Louisiana." The $6 billion contract will include procurement, engineering and construction of natural gas liquefaction and export facilities that will be added to the existing LNC regasification facility. It's expected to create about 3,000 on-site jobs including several hundred jobs at CB&I's fabrication facilities in Louisiana. Additionally, officials expect several hundred engineering and project management jobs at its Baton Rouge office that will support design, fabrication and construction of the new facilities.

According to the company, the Cameron Liquefaction Project will be comprised of three liquefaction trains with a capacity of about 13.5 million tons per year of LNG. In February 2014, Cameron received conditional authorization from the U.S. Department of Energy (DOE) to export domestically produced LNG to countries that do not have a free trade agreement with the U.S., including those in Europe and Asia. San Diego-based Sempra Energy will have an indirect 50.2 percent ownership interest in Cameron and the related liquefaction project, however it will be subject to a final investment decision, the finalization of permits and securing financing. The remaining portion of the liquefaction project and Cameron will be owned by affiliates of Paris-based GDF SUEZ S.A. and the Japan-based Mitsubishi Corporation—through a related company that was jointly established with Nippon Yusen Kabushiki Kaisha and Mitsui & Co., Ltd., both based in Japan. Each company will hold 16.6 percent stakes.

CB&I President and Chief Executive Officer Philip K. Asherman said, "This new award builds on our strong presence along the U.S. Gulf Coast, including Louisiana. This project will utilize a large number of engineering and construction craft workers, and we feel fortunate to be able to contribute to both the growth in jobs and the infrastructure in the state." Shogo Shibuya, Chiyoda's president and CEO who says the company accounts for more than 40 percent of the world's total LNG production capacity, said, "Chiyoda has been accelerating its involvement in the development of LNG projects in North America, based on its innovative plant design and world-class project execution capabilities, with a relentless drive for safety and contributing to the local community."

In 2013, CB&I, which houses its U.S. headquarters in Woodlands, Tx., acquired the Shaw Group, Baton Rouge's only Fortune 500 company for $3 billion. The company opted to centralize its government solutions division in Baton Rouge and relocate 400 professional jobs to the city. Both companies combined have more than 50,000 employees worldwide, with about 1,000 employees in Baton Rouge.

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