Bechtel Energy has secured a lump-sum turnkey engineering, procurement and construction (EPC) contract with Cheniere Energy Partners for the first phase of the Sabine Pass LNG Expansion Project. 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.
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 million tonnes per annum. The project is expected to have an LNG production capacity of more than 6 million tonnes per annum, including estimated debottlenecking opportunities.
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 expects to reach a final investment decision on Phase 1 by early 2027, marking an important milestone in the development of the Sabine Pass expansion project.
Cheniere's Chairman, President and Chief Executive Officer, Jack Fusco, expressed his excitement about partnering with Bechtel again, citing the unmatched track record for execution excellence established by their relationship.
The SPL Expansion Project commences as LNG market dynamics highlight the criticality of secure supply in the global energy system. Cheniere looks forward to bringing much-needed LNG capacity to the market and providing customers with reliable and flexible LNG from Train 7.
Cheniere Partners owns the Sabine Pass LNG terminal in Louisiana, which currently has more than 30 million tonnes per annum of LNG production capacity in operation. The expansion project is expected to increase this capacity significantly.
The award of the EPC contract demonstrates Bechtel's capabilities and expertise in delivering complex energy projects on time and within budget.
As the global energy landscape continues to evolve, secure supply of liquefied natural gas (LNG) becomes increasingly critical for meeting growing demand and reducing reliance on fossil fuels.
The award of the EPC contract marks an important step towards the final investment decision, highlighting the criticality of secure supply in the global energy system.
