June 6 (Reuters) - U.S. liquefied natural gas (LNG)
exporter Freeport LNG filed a lawsuit in April against three
contractors, alleging that installation defects in electric
motors at its $14-billion Texas export plant caused prolonged
outages and costly repairs.
The lawsuit, filed in a Texas district court, alleges that
work done by contractors Zachry Industrial, Chiyoda
International, and CB&I, a unit of McDermott
, resulted in major damage to key equipment.
Freeport's Quintana, Texas, facility has experienced roughly
a dozen incidents so far this year. The plant can produce more
than 15 metric tonnes per annum of LNG and consume roughly 2.1
billion cubic feet per day of natural gas, enough to roil gas
markets when it goes offline.
Freeport LNG declined to comment. Chiyoda and Zachry did not
immediately respond to requests for comment and CB&I did not
immediately provide a comment.
Zachry Holdings filed for bankruptcy last month and stepped
away from work on the Golden Pass LNG plant, owned by Exxon
Mobil ( XOM ) and QatarEnergy, that is under construction in
Texas.
All three firms had been contracted to work on Golden Pass.
The Freeport LNG plant was converted from an import facility
roughly 15 years ago as the U.S. shale revolution flooded the
country with natural gas. It is the first world-scale
electric-powered LNG plant in North America, with three trains
running on General Electric ( GE ) 75-megawatt motors.
Problems with the motors were identified following an
incident in January, according to the lawsuit. A root cause
analysis of the incident found an electrical short resulting
from loose assembly hardware, including nuts and bolts.
A further investigation found additional issues related to
the motors, including a "significant partial discharge" due in
part to excessively long cables.
Freeport inspected Train 1 and 2 after identifying problems
with Train 3's motors and further halted some operations.
Additional workmanship issues were found on Train 2, the lawsuit
said.
Freeport did not specify how much it was seeking in damages
in the lawsuit, but said that the amount was over $1 million.