32.7 C
Friday, July 19, 2024

CMC strikes back: We are entitled to compensation, not punishment

Must read

Επανèρχεται &eta ; CMC: Διοσεμiωηκι ;ι τιμωρλα

A new announcement was issued on Saturday afternoon by the construction consortium of the LNG terminal in Vasiliko CPP-METRON CONSORTIUM LTD (CMC), this time indicating that the course of implementation of the onshore projects at the terminal is not related to the non-receipt of the FSRU floating unit Prometheus, as ETYFA is trying, according to CMC, "to disorientate".

At the same time, the consortium formulates the position that if ETYFA continues to change the rules, CMC is entitled to be fairly compensated and not punished.

In its new announcement, CMC reiterates that "ETYFA has requested huge changes to what CMC had originally agreed to build in the onshore portion", indicating that ETYFA cannot "use the onshore projects to distract attention from its mishandling  regarding the FSRU and other failures of its own".

The consortium notes that following CMC's public comments regarding the availability of the FSRU ETYFA Prometheus in Shanghai and ETYFA's failure to receive it, a number of press reports appeared yesterday (May 17) criticizing the "erroneous" the course of completion of the onshore works at the LNG terminal in Vasiliko. He adds that he therefore seizes the opportunity to briefly present the real picture as far as land projects are concerned.

He reiterates that ETYFA has submitted "excessive and unjustified requests" for changes in the design and construction of the onshore portions of the facility, which have caused significant delays and costs.

CMC says it was awarded the contract to design, build and operate the LNG terminal in December 2019, which included the delivery of the onshore pipeline, the creation of an underground "storage" required in such a natural gas pipeline system and the Pressure Reducing and Measuring Station (PRMS).

However, it claims, ETYFA and Hill's Counsel "repeatedly instructed the contractor initially to deviate from the initial agreed technical specifications and second to adopt different and conflicting operating parameters”.

According to CMC, several other changes called for by ETYFA in onshore projects include LNG composition, valves, design flow rate and control rooms. "These changes have resulted in the need for additional engineering, procurement, civil engineering, and testing projects, as well as an increase in the size and complexity of onshore projects overall," says the construction consortium.

CMC reiterates that it has done its best to accommodate these many changes but that there are time and cost implications from ETYFA's decisions that must be acknowledged.

CMC further states that it informed ETYFA of the potential impact of these changes and offered several alternative options, with estimated prices for each option, however, it adds, ETYFA instructed CMC not to seek compensation and refused to pay for the additional works.

CMC estimates that the additional time and costs associated with ETYFA directives are in the millions of euros.

Therefore, it adds, the onshore projects situation is not an answer to CMC's reasonable concerns and inquiries as to why ETYFA has not taken delivery of the FSRU (which was ready since mid-January), neither ETYFA's non-payment of payments to CMC nor a myriad of other issues raised by ETYFA during the course of the project and CMC's effort to deliver it to the highest quality and safety standards.

Also read: CMC strikes back and says ETYFA is not paying changes that asked

Source: www.sigmalive.com

- Advertisement -AliExpress WW

More articles

- Advertisement -AliExpress WW

Latest article