Infrastructure

McDermott Wins $25bn Deal for Louisiana LNG Project

The firm will oversee front-end engineering and planning for the LNG facility.

Updated on

September 25, 2025

A liquefied natural gas facility. (Photo: Courtesy)

McDermott, the Houston-based engineering and construction giant, has been awarded a master services agreement (MSA) by Monkey Island LNG.

The company will provide front-end engineering and planning services for the upcoming LNG facility. The agreement, announced on September 8, positions McDermott at the centre of what is set to become one of North America’s largest LNG developments.

Under the MSA, McDermott will handle engineering, execution planning, and pricing for the facility’s engineering, procurement, and construction (EPC) phase.

The final EPC contract will be issued in line with Monkey Island LNG’s financing schedule, though the companies have not disclosed the MSA’s value.

“This award underscores the depth of expertise of McDermott in LNG and modular design,” said Rob Shaul, senior vice president of low carbon solutions at McDermott.

“Our integrated delivery model—including self-perform construction and a global network of McDermott-owned fabrication yards—positions us to deliver a solution that maximizes value while minimizing risk.”

The Monkey Island LNG facility, planned for Cameron Parish, is expected to cost $25 billion across two phases. Phase 1 will include three LNG trains, each with a capacity of 5.2 million metric tons per annum, producing a combined 15.6 MTPA. Future expansion could add two more trains, raising total output to 26 MTPA.

“By leveraging LNG mega-modules, we dramatically reduce the site footprint required for world-scale LNG production, which drives down project costs and risks,” said Greg Michaels, founder and CEO of Monkey Island LNG.

Engineering and permitting work is expected to begin in 2026, with first LNG production slated for the early 2030s. McDermott’s Houston team will lead the project, supported by its engineering group in Gurugram, India.

The agreement comes as LNG infrastructure experiences a surge in growth, aided by federal support for large-scale energy projects.

President Donald Trump’s 2017 “Unleashing American Energy” executive order, along with changes to the National Environmental Policy Act, has sped permitting processes, creating a more favourable environment for projects such as Monkey Island LNG.

McDermott, which posted $8.9 billion in revenue in 2024 and ranked as the ninth-largest builder in the U.S., will deploy its modular LNG train design, a strategy aimed at reducing both cost and project risk.

Analysts say securing the contract highlights McDermott’s competitive position in the growing North American LNG sector, joining peers like Bechtel, which recently received approval for the $6.7 billion Train 4 at Rio Grande LNG in Texas.