Bankruptcy and Withdrawal of Golden Pass LNG’s Joint Execution Partner and Completion Risk
First written in FY2024. 8 of 10 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「In November 2025, we formally executed an amended EPC contract with GPX. This established a structure for carrying out construction across all three trains, Trains 1–3. For Train 1, construction and commissioning were completed in March 2026, and first LNG production was achieved.」
For Golden Pass LNG following Zachry's withdrawal, established the amended EPC contract and execution structure for all three trains, Trains 1–3, and completed construction and commissioning of Train 1, achieving first LNG production. - FY2026-H1MitigatedAnnual report
「Following the withdrawal of Zachry, the U.S. Golden Pass LNG project formed a two-company joint venture with McDermott, replacing the former joint venture with Zachry, and has proceeded with construction after agreeing with its customer, Golden Pass LNG LLC (GPX), to amend the EPC contract for Train 1 last November. During the interim consolidated accounting period, while negotiating amendments to the EPC contract for Trains 2 and 3, the company reached a basic agreement with GPX in June on the allocation of responsibility for future cost burdens, including settlement of costs to be incurred in executing the project going forward. The parties are now in the final stage before signing the contracts.」
Following Zachry's withdrawal, the execution structure was rebuilt as a two-company joint venture with McDermott, and basic agreement was reached on the allocation of responsibility for future costs for Trains 2 and 3. The contract has not yet been signed, but measures to address completion risk are progressing. - FY2025MitigatedAnnual report
「In August 2024, the local court granted final approval to the basic agreement concerning Zachry's withdrawal from the GPX project, formally confirming that withdrawal. In November of the same year, we reached an agreement with our customer, Golden Pass LNG Terminal LLC (GPX), to amend the EPC contract for Train 1, based on costs re-estimated by the joint venture partners CB&I LLC and Chiyoda International Corporation (CIC). The contract covers engineering, procurement and construction, and the improved profitability resulting from the agreement was reflected in the consolidated fiscal-year results.」
Zachry's withdrawal was formally confirmed, the execution structure changed to one led by CB&I and CIC, and the Train 1 contract with GPX was amended, improving profitability. Amendments for Trains 2 and 3 remain outstanding. - FY2025-H1MaterialisedAnnual report
「In August 2024, the local court granted final approval to the basic agreement concerning Zachry's withdrawal from the GPX project, formally confirming that withdrawal. In the same month, the U.S. joint venture partner CB&I LLC and Chiyoda International Corporation (CIC), a U.S. group company, received a formal order from GPX for a “short-term execution plan” under which the construction work handled by Zachry would be changed to the two companies and resumed. They are reviewing the estimates.」
Zachry's withdrawal from the Golden Pass LNG project was formally confirmed through court approval, and CB&I and CIC received a formal order for a short-term execution plan under which the construction work would be changed to them. - FY2024First statedAnnual report
「In connection with the Golden Pass LNG project being carried out by our group in Texas, Zachry Industrial, Inc., the U.S. joint execution partner, filed for protection under Chapter 11 of the U.S. Bankruptcy Code on 21 May 2024 and entered legal reorganisation proceedings. In light of the possibility of Zachry's withdrawal from the GPX project, we are taking into account the construction costs estimated to be necessary for future project completion.」
Zachry's Chapter 11 filing and possible withdrawal from the Golden Pass LNG project were first disclosed as a standalone project-specific risk, leading to discussions on estimating completion costs, construction losses and rebuilding the execution structure.