Seatrium's contract for Empire Wind 2 platform cancelled

Singapore's Seatrium Ltd (SGX:S51), previously Sembcorp Marine Ltd, said on Thursday that Empire Offshore Wind LLC has canceled the contract for the offshore substation platform for the Empire Wind 2 project in the US.

The news follows the announcement that the joint developers of the Empire offshore wind project, Equinor ASA and BP Plc, have agreed to terminate the Offshore Wind Renewable Energy Certificate (OREC) contract for Empire Wind 2.

In May 2023, Seatrium was awarded contracts to deliver two platforms for the Empire Wind 1 and 2 projects offshore Long Island.

The company now said that due to the impact of macroeconomic conditions on the Empire Wind 2 project, Empire Offshore Wind has decided to cancel the contract for the 1,260-MW Empire Wind 2 offshore substation platform. The deal was worth more than SGD 250 million (USD 188m/EUR 172m).

The contract for the 810-MW Empire Wind 1 platform remains unaffected, with construction underway since the fourth quarter of 2023, Seatrium said.

Construction of the Empire Wind 2 platform was to begin in June 2024. The Singaporean contractor has only performed minimal engineering work on this assignment and has received the corresponding payment. It plans to allocate the construction capacity originally designated for this project to other orders in its pipeline.

(SGD 1 = USD 0.753/EUR 0.690)

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