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EPC contractors agree terms for QatarEnergy’s US LNG project

2 July 2025

Japan’s Chiyoda Corporation and US-based McDermott International have agreed terms to execute engineering, procurement and construction (EPC) works on the second and third trains of the Golden Pass liquefied natural gas (LNG) terminal project in the US that is majority-owned by QatarEnergy.

The two contractors, who are already performing EPC works on the first train of the estimated $10bn project, have signed a binding term sheet addressing the key components of an agreement for completion of trains 2 and 3.

“When combined with the amendment of the engineering, procurement and construction (EPC) contract for the completion of the full scope for Train 1, and when converted into an approved contract amendment, this term sheet addresses the full scope and commercial terms for completion of the project,” Tokyo-listed Chiyoda said in a filing.

“MDR [McDermott] and CIC [Chiyoda], and Golden Pass LNG Terminal LLC will continue engagements to finalise amendment to the contract and will disclose promptly when we conclude such agreement,” it added in its filing.

QatarEnergy is the majority stakeholder in the Golden Pass LNG project, with a 70% stake, while US oil and gas producer ExxonMobil owns the remaining 30%.

Located in the Sabine Pass on the upper Texas coast, the Golden Pass project will include three liquefaction trains with a capacity of 5.2 million tonnes a year each. The facility will also feature associated utility systems, interconnections and an expansion of the facility’s storm protection levee system.

The export design will use the existing infrastructure in the area, which includes five storage tanks, two marine berths to accommodate the largest LNG carriers and an existing 69-mile pipeline system with access to US markets.

ALSO READ: Minister says Qatar on track to double LNG output

QatarEnergy and ExxonMobil reached financial closure on the Golden Pass LNG project in February 2019. The partners appointed Ocean LNG – which is also their 70:30 joint venture – for the offtake and marketing of all LNG volumes to be produced by the facility in April of that year.

Golden Pass LNG Terminal – a joint venture of QatarEnergy and ExxonMobil – awarded the EPC contract for the project to a consortium of McDermott, Chiyoda and US-based Zachry Holding.

Zachry filed for chapter 11 bankruptcy in the US in May last year, citing various issues, causing the contractor to exit the consortium.

With McDermott and Chiyoda now signing a binding agreement to execute EPC works on trains 2 and 3 of the Golden Pass LNG project, completion and commissioning could take place by the end of this year.

Also, in March this year, the US Department of Energy (DoE) extended the deadline for the commencement of export operations at the Golden Pass LNG terminal project by two years. This implies that Golden Pass LNG Terminal has until 31 March 2027 to dispatch the first LNG cargo from the facility.

The extension applies to the permit held by Golden Pass LNG Terminal relating to countries with which the US does not have a free-trade agreement (non-FTA). The DoE earlier waived a deadline requirement for the project operator to begin LNG sales to FTA countries.

Golden Pass LNG is permitted to ship the equivalent of up to 937 billion cubic feet of LNG a year each to both FTA and non-FTA countries, with volumes being non-additive. The permits expire at the end of 2050.

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Indrajit Sen

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