Cheniere Hires Bechtel for First Phase EPC of Sabine Pass LNG Expansion
Cheniere Energy Partners (CQP) said in a Thursday statement that its subsidiary, Sabine Pass Liquefaction Stage V LLC, has signed a lump-sum, turnkey engineering, procurement, and construction contract with Bechtel Energy for the first phase of the Sabine Pass Liquefaction Expansion Project in Louisiana.The company also said it had authorized Bechtel to begin early engineering and procurement work for Phase 1 under a limited notice to proceed.The expansion project is designed to include up to three large-scale liquefaction trains with an expected peak production capacity of about 20 million tonnes per annum of LNG, including debottlenecking opportunities and related infrastructure.Phase 1 of the project includes the construction of Train 7, a boil-off gas re-liquefaction unit and supporting infrastructure tied into the existing Sabine Pass LNG terminal. Cheniere said the first phase is expected to produce more than 6 mtpa of LNG, including estimated debottlenecking capacity.The company said Phase 1 is backed by long-term agreements with creditworthy counterparties. A final investment decision remains subject to regulatory approvals and financing arrangements.Applications with the Federal Energy Regulatory Commission to construct and operate the expansion project, as well as Department of Energy approval to export LNG to non-free trade agreement countries, are still pending."The EPC contract and the issuance of LNTP mark important steps toward FID, which we expect to occur by early next year," Chief Executive Jack Fusco said in a statement.Cheniere Partners owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which currently operates liquefaction facilities with total production capacity exceeding 30 mtpa of LNG. The terminal also includes regasification facilities, five LNG storage tanks, vaporizers and three marine berths.The partnership also owns the Creole Trail Pipeline, which connects the Sabine Pass terminal to several interstate and intrastate natural gas pipelines.Price: $60.87, Change: $+0.25, Percent Change: +0.40%
