Golden Pass LNG, a former contractor, will emerge from bankruptcy at the end of March

The Texas contractor who last year walked away from the Golden Pass project of a liquefied gas plant, a joint venture with Exxon Mobil and QatarEnergy, may be able to exit Chapter 11 bankruptcy by April, according to the company.

Zachry Holdings announced that the U.S. Bankruptcy Court of the Southern District of Texas approved its reorganization plans on Friday, clearing the way for them to complete the process by the end of the month.

The court scheduled a confirmation hearing for the 26th of February.

Zachry, a San Antonio-based company, filed for bankruptcy and quit the project of an export terminal in Sabine Pass in Texas in May. It claimed that costs had exceeded its budgeted construction contract. It failed to negotiate a new contract.

Zachry could be a good option for developers looking for an LNG contractor with experience.

Zachry was replaced by Chiyoda International Corp as the main construction contractor for Golden Pass. Zachry reached an agreement in July 2024 to settle disputes relating to the project.

Zachry's portion of the construction costs for Golden Pass was budgeted to be $5.8 Billion.

Zachry stated that the project cost $30 to $40 million per week, while Golden Pass pays it $70 millions monthly.

Zachry stated in a press release that "we are happy to have filed a revised plan...and all parties have agreed to work in good faith in order to finalize the creditor treatment in the plan."

Exxon says that the exit has caused further delays to the construction of 18 million metric tons per annum LNG plant, which will now produce its first LNG by 2025.

Zachry says it is still operating at all its active jobs and projects. Reporting and editing by Cynthia Osterman, Alistair Bell and Curtis Williams from Houston

(source: Reuters)