CIMIC, the engineering company in charge of the construction of a 500 MW gas-fired CCGT power plant for the Ichthys LNG project in Australia, has terminated the contract for the design, construction and commissioning of the project, that it had signed with JKC Australia LNG.
The CCGT project, which is 89% complete, was hit with substantial delays and disruption, forcing the construction company UGL to take a A$200m provision for the project. UGL's new owner, CIMIC, preferred to terminate the contract.
Japanese oil and gas company Inpex, which owns 62% in the Ichthys LNG project (30% Total, 1.6% Tokyo Gas, 1.2% Osaka Gas, 1.2% Kansai Electric, 0.7% Chubu Electric and 2.6% CPC), is building the 8.9 Mt/year Ichthys liquefaction project. Its commissioning date has already been delayed from late December 2016 to the third quarter of 2017. The termination of the CCGT contract may delay the planned ramp-up of the project.
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