Cheniere Energy Partners, a limited partnership formed by US LNG exporter Cheniere and the operator of the Sabine Pass LNG terminal, announced the award by its unit Sabine Pass Liquefaction Stage V in a statement on Thursday.
The company did not provide the pricing details in the statement.
However, Cheniere Partners said in a SEC filing later on Thursday that the EPC contract is valued at $4.69 billion.
Cheniere’s Sabine Pass facility currently has a capacity of approximately 30 million tonnes per annum (mtpa) following the launch of the sixth train in February 2022.
The 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 mtpa of LNG, inclusive of estimated debottlenecking opportunities and supporting infrastructure.
Cheniere Partners is developing the project in phases.
The EPC agreement with Bechtel for Phase 1 includes a single train, Train 7, a boil-off gas reliquefaction unit, along with supporting infrastructure and tie-ins to the existing Sabine Pass LNG terminal.
Inclusive of estimated debottlenecking, Phase 1 has an expected total LNG production capacity of over 6 mtpa.
Cheneire Partners said Phase 1 is commercially underpinned by long-term agreements with “creditworthy counterparties”, and a positive final investment decision (FID) on Phase 1 is subject to, among other things, receipt of necessary regulatory approvals and an acceptable financing arrangement.
The Federal Energy Regulatory Commission (FERC) application for authorization to site, construct, and operate the expansion Project, as well as the Department of Energy (DOE) application authorizing the export of LNG to non-free trade agreement (non-FTA) countries, remain pending.
Last month, FERC released a draft environmental impact statement for Cheniere’s planned Sabine Pass Stage 5 expansion project.
The regulator concluded that construction and operation of the LNG project would result in “some adverse environmental effects; however, effects would be reduced to less-than-significant levels.”
Cheniere Partners expects to reach FID on Phase 1 by early 2027.
(Article updated to say that the value of the EPC contract is $4.69 billion.)
