Zachry Industrial, Inc. Awarded Contract for LNG Liquefaction Terminal

A joint venture of Zachry Industrial, Inc. and CB&I has been selected by FLNG Liquefaction, LLC and FLNG Liquefaction 2, LLC to engineer, procure and construct the Freeport Liquefaction Project in Brazoria County, Texas. Zachry and CB&I will provide overall EPC Project Management for the project. Zachry will lead the field management and direct-hire construction activities, and supply the bulk materials. CB&I will lead the engineering and design effort for the project, and procure major equipment and materials.

"We are very excited to be part of the FLNG team that is building this critical project," said Ralph Biediger, president of Zachry's Construction Group. "The project will provide well over 2,000 construction jobs and will utilize a large number of suppliers and subcontractors in the region. We feel fortunate to be able to continue creating opportunities and jobs in this community, which we have been a part of for many years. We are also excited to partner with CB&I and to be able to combine the vast experience and capabilities of our two companies to deliver on the commitments we have made to our customer."

The project scope includes two Liquefied Natural Gas (LNG) process trains, each with a capacity to produce in excess of 4.4 million tons per year (MTPA) of LNG; a gas pretreatment facility; and an expansion to the existing dock infrastructure. The process trains will be located adjacent to the existing Freeport LNG Regasification Terminal on Quintana Island. The new award includes a limited notice to proceed on engineering and procurement services while the project awaits its final governmental approvals. A Letter of Intent has also been signed between the Parties and an affiliated Freeport LNG entity for a third liquefaction process train, which is planned.

Zachry was the constructor of the original regasification terminal on Quintana Island, and the Zachry/CB&I joint venture has been under contract with Freeport LNG since early 2012 performing FEED services for the liquefaction project.