Cheniere partners signs EPC deal for Sabine Pass Phase 1

Cheniere Energy Partners, L.P. announced that its subsidiary, Sabine Pass Liquefaction Stage V, LLC (SPLV), has signed a lump sum turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy, Inc. for the first phase of the Sabine Pass Liquefaction (SPL) Expansion Project. SPLV has also authorised Bechtel to begin early engineering and procurement activities for Phase 1 under a limited notice to proceed (LNTP).

The SPL Expansion Project is designed to include up to three large-scale liquefaction trains with an anticipated total peak production capacity of approximately 20 million tonnes per annum (mtpa) of liquefied natural gas (LNG), including expected debottlenecking opportunities and supporting infrastructure. The project will be developed in phases.

Phase 1 of the expansion includes the construction of Train 7, a boil-off gas re-liquefaction unit, and supporting infrastructure, along with tie-ins to the existing Sabine Pass LNG Terminal. Including estimated debottlenecking opportunities, Phase 1 is expected to deliver more than 6 mtpa of LNG production capacity. The phase is backed by long-term agreements with creditworthy counterparties. However, a final investment decision (FID) remains subject to regulatory approvals and satisfactory financing arrangements.

Applications with the Federal Energy Regulatory Commission (FERC) for authorisation to site, construct and operate the project, as well as the Department of Energy (DOE) application to export LNG to non-free trade agreement (non-FTA) countries, are still pending. Cheniere Partners expects to reach FID on Phase 1 by early 2027.

Jack Fusco, chairman, president and chief executive officer of Cheniere, stated that the company is pleased to continue its partnership with Bechtel on the first phase of the SPL Expansion Project. He noted that the EPC contract and LNTP represent important milestones toward achieving FID, which is expected by early next year. Fusco added that the project comes at a time when global LNG market dynamics continue to emphasise the importance of secure energy supply, and said the company looks forward to delivering additional LNG capacity through Train 7 to provide customers with reliable and flexible supply.

For more information visit www.cheniere.com