Singapore's Seatrium Ltd (SGX:S51), formerly known as Sembcorp Marine Ltd, announced on Thursday the cancellation of the contract for the offshore substation platform for the Empire Wind 2 project in the US by Empire Offshore Wind LLC.
This development follows the recent decision by joint developers Equinor ASA and BP Plc to terminate the Offshore Wind Renewable Energy Certificate (OREC) contract for Empire Wind 2.
Seatrium had been awarded contracts in May 2023 to deliver two platforms for the Empire Wind 1 and 2 projects offshore Long Island.
Attributing the cancellation to the impact of macroeconomic conditions on the Empire Wind 2 project, Empire Offshore Wind terminated the contract for the 1,260-MW offshore substation platform, valued at more than SGD 250 million (USD 188 million/EUR 172 million).
The contract for the 810-MW Empire Wind 1 platform remains unaffected, with construction underway since the fourth quarter of 2023, according to Seatrium.
Originally scheduled to commence construction in June 2024, the Empire Wind 2 platform's cancellation prompted Seatrium to reallocate the construction capacity initially designated for this project to other orders in its pipeline. The Singaporean contractor noted that it had only completed minimal engineering work on the assignment and received corresponding payments.
