Golden Pass LNG is seeking permission to boost construction crew hours at one of its compressor station (CS) projects to keep work on track as contractors find a path forward in bankruptcy court.
While temperatures continue to soar in Texas, project developers are still dealing with the aftermath of torrential rains that have drenched the Southeast throughout the late spring.
Golden Pass LNG Pipeline LLC (GPPL) has asked FERC to temporarily allow a 24/7 work schedule at its MP 69 CS site in Starks, LA “due to the flooded site conditions causing unsafe work conditions and potential off-site turbidity concerns caused by excessive rainfall.”
Golden Pass staff told the Federal Energy Regulatory Agency that increased work hours were necessary to undertake emergency dewatering around the site to prevent further issues.
‘Problem Area’
MP 69 CS is one of three compressor facilities under construction as part of GPPL’s pipeline expansion project to move gas to the 2.4 Bcf/d capacity liquefied natural gas export terminal. In April, FERC granted permission for Golden Pass to introduce gas to a roughly half-mile stretch of free-flow line from MP 69 CS to carry up to 600,000 Dth/d as far south as the Golden Triangle Storage facility in Beaumont, southeast of Houston.
In a recently published report of a May site inspection, FERC staff noted the anticipated in-service timing for related pipeline expansions was “expected sometime in the first half of 2025.” That timing matches guidance from joint venture partners ExxonMobil and QatarEnergy released late last year.
However, Zachry Industrial Inc.’s bankruptcy “may impact completion timelines,” FERC staff wrote. It also categorized the MP 69 CS site as a “problem area,” with the heavy rains over the past weeks exposing large amounts of soil and covering the area with stormwater.
Work Continues
Zachry informed the Texas Workforce Commission that late last month, it laid off more than 4,000 people assigned to the project. The San Antonio-based parent company filed for bankruptcy in late May, noting “significant financial strain” from attempts to keep Golden Pass on schedule.
Zachry had taken on the role of hiring and coordinating the onsite construction staff as part of an EPC joint venture with Chiyoda Corp. and McDermott.
Chiyoda in early May postponed its 1Q2024 earnings release, citing the need to gather more information about an impacted project in which it is involved. Earlier this month, the Japanese company confirmed the impacted project was Golden Pass LNG.
However, Chiyoda also disclosed the bankruptcy court has granted requests to allow it and McDermott to continue construction activities and pay contractors without directly involving Zachry.
“Discussions about a short-term execution plan for continuation of the project and a long-term execution plan for completion of the project” have been ongoing in preparation for Zachry’s departure from the project, Chairman Masakazu Sakakida said in a letter to shareholders.
