Cheniere Energy Partners, L.P. announced that its subsidiary Sabine Pass Liquefaction Stage V, LLC has signed a lump‑sum, turnkey EPC contract with Bechtel Energy for the first phase of the Sabine Pass LNG Expansion Project. The agreement also includes a limited notice to proceed, allowing Bechtel to begin early engineering and procurement work.
Cheniere Partners Signs EPC Contract with Bechtel
The EPC contract covers Phase 1, which consists of a single new liquefaction train (Train 7), a boil‑off gas re‑liquefaction unit, and the necessary tie‑ins to the existing Sabine Pass terminal. The contract is a lump‑sum, turnkey arrangement, and the limited notice to proceed authorizes Bechtel to start early engineering and procurement activities. Jack Fusco, Cheniere’s Chairman, President and CEO, said the partnership “builds upon the unmatched track record for execution excellence” between the two companies and moves the project toward a final investment decision (FID) expected by early 2027.
Phase 1 Scope and Expected Capacity
Phase 1 is designed to deliver more than 6 million tonnes per annum (mtpa) of LNG, inclusive of estimated debottlenecking opportunities. The broader Sabine Pass Expansion Project envisions up to three large‑scale liquefaction trains for a total peak capacity of approximately 20 mtpa, including debottlenecking and supporting infrastructure. Phase 1 is underpinned by long‑term contracts with creditworthy counterparties, but the FID remains contingent on regulatory approvals and financing arrangements.
Regulatory and Financing Landscape
The Federal Energy Regulatory Commission (FERC) application for siting, constructing, and operating the expansion, as well as the Department of Energy (DOE) application for exporting LNG to non‑free‑trade‑agreement (non‑FTA) countries, are still pending. Cheniere Partners expects to secure the necessary approvals and an acceptable financing package in time to meet the early‑2027 FID target for Phase 1.
Key Takeaways
- Cheniere Partners awarded a lump‑sum, turnkey EPC contract to Bechtel for Sabine Pass Phase 1, covering Train 7 and related infrastructure.
- Phase 1 is projected to add over 6 mtpa of LNG capacity, contributing to a total planned capacity of up to 20 mtpa for the full expansion.
- The final investment decision is slated for early 2027, pending FERC and DOE approvals and satisfactory financing.
EnergyInsyte's Take
The EPC award signals that Cheniere is moving forward methodically on its expansion, but the project’s timeline still hinges on regulatory clearance and financing. Executives should monitor the pending FERC and DOE applications, as well as market conditions that could affect the financing environment, to gauge when Phase 1 might transition from planning to construction.
Source: Businesswire
