LNG PRODUCTION SYSTEM SUBSTANTIAL COMPLETION Clause Samples
The "LNG Production System Substantial Completion" clause defines the point at which the liquefied natural gas (LNG) production system is considered substantially complete and ready for its intended use. This typically involves meeting specific performance criteria, passing required inspections, and ensuring that all major components are operational, even if minor work remains. The clause is crucial for triggering contractual milestones such as final payments, transfer of risk, or commencement of warranty periods, thereby providing a clear and objective standard for project progress and reducing disputes over project delivery.
LNG PRODUCTION SYSTEM SUBSTANTIAL COMPLETION. 18.3.1 Upon compliance with all other conditions set forth in this Section 18.3, Contractor shall give Notice to Owner that LNG Production System Substantial Completion of an LNG Production System has occurred, which shall only be when all of the following items set forth in this Section 18.3 have occurred, unless Owner agrees in writing to waive any such requirements:
(a) all of the conditions for LNG Production System Mechanical Completion of such LNG Production System set forth in Section 18.1 have been met, and Owner has received and accepted the LNG Production System RFSU Certificate for such LNG Production System in accordance with Section 18.2;
(b) Owner has received the relevant System Turnover Packages demonstrating that Contractor has successfully completed all of the Pre-Commissioning and Commissioning of such LNG Production System;
(c) such LNG Production System is ready for normal, continuous and safe operation with the complement of personnel contemplated in Exhibit Q, and Contractor has corrected all Defects and Deficiencies (other than the Punch List Items);
(d) the Performance Tests for such LNG Production System have been satisfactorily completed in accordance with Exhibit R; and
(e) Contractor has delivered to Owner a certificate certifying the satisfaction of each of the foregoing items in this Section 18.3.1.
18.3.2 At such time as Owner and the Independent Engineer have confirmed that each of the matters set forth in Section 18.3.1 has been completed with respect to an LNG Production System, Owner shall issue to Contractor a certificate stating the LNG Production System Substantial Completion Date for such LNG Production System, which date shall be the date that Contractor delivered to Owner a certificate certifying the satisfaction of each of the items in Section 18.3.1.
LNG PRODUCTION SYSTEM SUBSTANTIAL COMPLETION. Upon compliance with all other conditions set forth in this Section 18.3, Contractor shall give Notice to Owner that LNG Production System Substantial Completion of an LNG Production System has occurred, which shall only be when all of the following items set forth in this Section 18.3 have occurred, unless Owner agrees in writing to waive any such requirements: