The US contractor McDermott has been awarded a master services agreement (MSA) to provide front-end engineering and planning services for the planned $25 billion Monkey Island LNG project in Louisiana in the US.
Furthermore, Phase 1 of the Monkey Island LNG facility will include a total of three liquefied natural gas trains . These will have a capacity of 5.2 million tonnes per annum a piece for a total nameplate capacity of combined production of 15.6 million tpa. Additionally, future expansion plans include two additional liquefaction trains which are expected to bring total capacity to 26 million tpa.
Project Factsheet
Location: Monkey Island, Cameron Parish, Louisiana.
Cost: $25 billion
Capacity: The facility is designed for a total capacity of 26 million metric tons per annum (MTPA). This will be across five liquefaction trains.
- Phase 1: Three LNG trains with a combined production of 15.6 MTPA (5.2 MTPA each).
- Future expansion: Two additional trains to bring the total capacity to 26 MTPA.
Technology: The project will use the ConocoPhillips’ Optimized Cascade Process for liquefaction.
Timeline:
- Permitting: Engineering and permitting are expected to begin in 2026.
- First production: The first LNG production is targeted for the early 2030s.
Significance of the Award
Furthermore, as revealed by McDermott on Monday, its award builds on Monkey Island LNG’s selection of ConocoPhillips’ Optimized Cascade process for the liquefaction technology. Also, McDermott’s compact, modular LNG train design is set to contribute to the delivery of up to 60% more LNG per acre than comparable projects, the contractor said.
“By leveraging LNG mega-modules, we therefore dramatically reduce the site footprint required for world-scale LNG production. Therfore, this drives down project costs and risks,” noted Greg Michaels, chief executive of Monkey Island LNG.
Details of the Master Services Agreement
Under the MSA, McDermott has been tasked to provide engineering, execution planning and pricing for the Cameron Parish facility’s engineering, procurement and construction (EPC) phase. Furthermore, the agreement is expected to transition into a final EPC contract aligned with the timing of Monkey Island LNG’s financing activities.
Lastly, engineering and permitting of the project are expected to begin in 2026. Also, the first LNG production is targeted for the early 2030s. The project will be led by McDermott’s Houston team, supported by its engineering group in Gurugram, India.
Louisiana is emerging as a global energy powerhouse. This project is among others that will be developed in the state. In another project, Woodside Energy, announced that it will be proceeding with its $17.5 billion investment in an LNG project in Louisiana. Such big investments being made in the state indicate that it will be a major energy hub globally.
