Marine Log

August 1, 2006

Chicago Bridge buys shipyard

Chicago Bridge & Iron Company (CB&I) has bought the former Bethlehem Steel, Beaumont, Texas, shipyard from Trinity Industries. It is expected to use the site for projects that include a just announced $1 billion LNG terminal contract.

Commercial Property News reports that the shipyardhas 400,000-square-feet of manufacturing facilities, about 12,000 to 13,000-lineal feet of rail and four major docks with 3,000 feet of dock space, most of it with drafts from 20 to 40 feet,

Trinity bought the yard in the late 1980's and had been using it for railroad tank car manufacture.

Trinity acquired the property using it for the manufacture of railroad tank cars.

CB&I is a global engineering, procurement, and construction (EPC) company.

Today Golden Pass LNG LLC today announced that it had awarded a lump-sum turnkey contract to CB&I for a liquefied natural gas (LNG) terminal to be built near Sabine Pass, Texas.

CB&I's work scope includes the engineering, procurement and construction of facilities with the capacity to process 15.6 million tons per year (MTA) of LNG, which is the equivalent of approximately 2 billion cubic feet of natural gas a day. The scope of the project includes the construction of two ship unloading berths, five full-containment storage tanks, vaporization facilities, gas send-out and ship unloading systems.

The contract potentially entails in excess of $1 billion, and is expected to provide a peak employment of more than 1,000 construction workers. The project is expected to provide job opportunities to locally-based subcontractors, suppliers and laborers.

Golden Pass LNG LLC, the owner of the Golden Pass LNG terminal, is expected to be 70 percent owned by an affiliate of Qatar Petroleum, with affiliates of ExxonMobil and ConocoPhillips each owning a share in the balance of the interest in the terminal. It is also expected that LNG for the Golden Pass terminal will be supplied primarily from the Ras Laffan 3 and the Qatargas 3 projects in Qatar, which will produce and process natural gas from Qatar's offshore North Field.