Cheniere Energy Partners has signed a lump-sum turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy for the first phase of the Sabine Pass LNG Expansion Project in Louisiana and issued a limited notice to proceed allowing early engineering and procurement work to begin.
The agreement covers Phase 1 of the expansion project, including Train 7, a boil-off gas re-liquefaction unit and supporting infrastructure connected to the existing Sabine Pass LNG terminal.
Phase 1 is expected to have LNG production capacity of more than 6 million tonnes per annum (mtpa), including estimated debottlenecking opportunities. The broader Sabine Pass expansion is being developed for up to three large-scale liquefaction trains with total peak production capacity of up to about 20 mtpa, including debottlenecking and supporting infrastructure.
Cheniere said the project is being developed in phases and that a final investment decision on Phase 1 remains subject to regulatory approvals and financing arrangements. Applications with the U.S. Federal Energy Regulatory Commission for project authorization and with the Department of Energy for LNG exports to non-free trade agreement countries remain under review.
The company said it expects to reach a final investment decision 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.
“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,” said Jack Fusco, Cheniere’s Chairman, President and Chief Executive Officer.
Cheniere Partners owns the Sabine Pass LNG terminal in Louisiana, which currently has more than 30 mtpa of LNG production capacity in operation.