This collaboration leverages modular design to increase LNG output by up to 60% per acre, positioning the project as a major player in the North American energy sector.
In a partnership that promises to reshape the landscape of natural gas liquefaction, Monkey Island LNG has awarded McDermott a Master Services Agreement (MSA). This agreement tasks McDermott with providing crucial front-end engineering and planning services for a new world-scale LNG facility in Cameron Parish, Louisiana. This project is a significant development, as it will utilize a compact, modular design to deliver up to 60% more LNG per acre than comparable facilities.
The project, which represents a massive $25 billion investment, is set to be one of the largest private energy infrastructure developments in North America. By leveraging LNG mega-modules, the project's developers aim to significantly reduce the required site footprint, which in turn drives down both project costs and risks. The goal is to maximize LNG production efficiency while minimizing the land used.
The Monkey Island LNG facility will be developed in two phases, with the first phase featuring three LNG trains, each with a capacity of 5.2 million metric tons per annum (MTPA). This will result in a combined production of 15.6 MTPA. Following this, the second phase will add two more LNG trains, bringing the total projected capacity to an impressive 26 MTPA. This scale of production is made possible by the project's use of the ConocoPhillips Optimized Cascade® Process, a technology known for its efficiency and high performance.
McDermott's role under the MSA is comprehensive, including engineering, execution planning, and pricing for the future engineering, procurement, and construction (EPC) phase of the project. The agreement is designed to smoothly transition into a final EPC contract once the necessary financing is secured by Monkey Island LNG. This integrated delivery model, which includes self-perform construction and a global network of McDermott-owned fabrication yards, is intended to maximize value and minimize risk throughout the project lifecycle.
The ambitious project has a clear timeline, with engineering and permitting slated to commence in 2026. The first LNG production is targeted for the early 2030s. The project will be a collaborative effort, led by McDermott's team in Houston, with significant support from its engineering group in Gurugram, India.
This partnership highlights the growing importance of innovative and efficient design in the energy sector, particularly as global demand for LNG continues to rise. By focusing on a compact, modular approach, Monkey Island LNG and McDermott are not only addressing the need for increased output but also demonstrating a commitment to optimizing land use and managing project risks effectively.
