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  • KBR alters its position regarding the Golsboro LNG facility EPCC contract
    édité le 15/07/2020 - Plus de news de "Pieridae" - Voir la fiche entreprise de "Pieridae"


KBR alters its position regarding the Golsboro LNG facility EPCC contract
Pieridae Energy Limited has received written notice from Kellogg Brown & Root Limited (“KBR”) that KBR is no longer prepared to negotiate and conclude a lump-sum turnkey engineering, procurement, construction and commissioning (“EPCC”) contract in relation to the proposed Goldboro LNG Facility. Although KBR has indicated they remain interested in providing the EPCC services for construction of the Goldboro LNG Facility, KBR’s decision to no longer provide a fixed price contract is in apparent contravention of its obligation under the terms of a signed services agreement dated March 27, 2019, made between Pieridae and KBR.

“With this notice from KBR, we are looking at all of our options, including discussing the matter with legal counsel to determine the most appropriate next steps,” said Pieridae CEO Alfred Sorensen. “There are other reputable and experienced firms who have the expertise to provide these services, with some already indicating a willingness to replace KBR. We have had discussions with several of them to gauge their interest.”

A Reuters article published June 22, 2020 stated ‘KBR will exit most of its liquified natural gas (LNG) construction and other energy projects.’ The article’s author wrote that KBR’s CEO sent an email to employees, stating that the company will ‘no longer engage in lump sum, blue-collar construction services,’ saying the COVID-19 pandemic accelerated the decision to leave fixed-price energy projects.

The Goldboro LNG Project remains solid with many key elements in place: the majority of key permits, a 20-year contract with German energy company Uniper Global Commodities to buy half of Goldboro’s gas, confirmation of eligibility in principle of an untied loan guarantee of up to US$4.5 billion from the German Government, a signed benefits agreement with the Nova Scotia Mi’kmaq, and Pieridae has the majority of the gas needed, when developed, to supply Goldboro’s Train 1.

Uniper had agreed in recent weeks to extend key deadlines including making a final investment decision on the Goldboro LNG Facility by June 30, 2021. Concurrently, Pieridae continues to take further tangible steps to advance the project as we design and plan core owner infrastructure projects such as the highway re-alignment around the LNG Facility site; construction of a large-scale work camp; building key marine facilities for LNG offloading; and, facility site terracing.

About Pieridae

Founded in 2011, Pieridae (TSX: PEA.TO), a majority Canadian owned corporation based in Calgary, is focused on the development of integrated energy-related activities, from the exploration and extraction of natural gas to the development, construction and operation of the Goldboro LNG facility and the production of LNG for sale to Europe and other markets. Pieridae is on the leading edge of the re-integration of the LNG value chain in North America. After completion of all the transactions disclosed in this news release, Pieridae has 157,641,871 common shares issued and outstanding which trade on the TSX (“PEA.TO”).

About KBR, Inc.

KBR (NYSE: KBR) is a global provider of differentiated professional services and technologies across the asset and program lifecycle within the Government Solutions and Energy sectors. KBR employs approximately 37,000 people worldwide (including our joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:

- Government Solutions, serving government customers globally, including capabilities that cover the full lifecycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
- Technology Solutions, featuring proprietary technology, equipment, catalysts, digital solutions and related technical services for the monetization of hydrocarbons, including refining, petrochemicals, ammonia and specialty chemicals, as well as inorganics
- Energy Solutions, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU); program management and consulting services


Origine : Communiqué Pieridae

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