Cheniere partners sign EPC contract with Bechtel for Texas expansion

Cheniere Energy Partners, L.P. announced that its subsidiary, Sabine Pass Liquefaction Stage V, LLC (SPLV), has entered into a lump sum, turnkey, engineering, procurement and construction contract with Bechtel Energy, Inc. for the first phase of the SPL Expansion Project (Phase 1).

In addition, SPLV has released Bechtel to commence early engineering and procurement for Phase 1 under a limited notice to proceed.

The SPL Expansion Project is being developed for up to three large-scale liquefaction trains with an expected total peak production capacity of up to approximately 20 million tonnes per annum of liquefied natural gas, inclusive of estimated debottlenecking opportunities and supporting infrastructure. The SPL Expansion Project is being executed in phases. The EPC agreement with Bechtel for Phase 1 includes a single train, Train 7, a boil-off gas reliquefaction unit, and supporting infrastructure and tie-ins to the existing Sabine Pass LNG Terminal. Inclusive of estimated debottlenecking, Phase 1 has an expected total production capacity of over 6 mtpa of LNG. Phase 1 is commercially underpinned by long-term agreements with creditworthy counterparties, and a positive final investment decision on Phase 1 is subject to, among other things, receipt of necessary regulatory approvals and an acceptable financing arrangement.

Next steps for the project

The Federal Energy Regulatory Commission application for authorization to site, construct and operate the SPL Expansion Project, as well as the Department of Energy application authorizing the export of LNG to non-free trade agreement (non-FTA) countries, remain pending. Cheniere Partners expects to reach FID on Phase 1 by early 2027.

“We are pleased to once again partner with Bechtel on the first phase of the SPL Expansion Project, and we look forward to building upon the unmatched track record for execution excellence the Cheniere and Bechtel relationship has established while successfully building our leading LNG platform. The EPC contract and the issuance of LNTP mark important steps toward FID, which we expect to occur by early next year. We are excited to have the project underway and are laser-focused on the remaining steps required to reach FID,” said Jack Fusco, Cheniere’s Chairman, President and Chief Executive Officer. “The SPL Expansion Project commences as LNG market dynamics highlight the criticality of secure supply in the global energy system. We look forward to bringing this much-needed LNG capacity to the market and providing our customers with reliable and flexible LNG from Train 7.”