Cheniere taps Bechtel for liquefaction at Sabine Pass LNG

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, June 10 -- Cheniere Energy Inc. unit Cheniere Partners LP let a contract to Bechtel Oil, Gas & Chemicals for the design and construction of liquefaction facilities at Cheniere’s 4 bcfd Sabine Pass LNG receiving terminal in Cameron Parish, La. The facilities will use ConocoPhillips’s optimized cascade liquefaction technology.

Bechtel designed and built the Sabine Pass LNG receiving terminal.

The Sabine Pass site can accommodate up to four LNG trains capable of processing about 2 bcfd of natural gas, according to Cheniere. The capacity of each liquefaction train would be about 3.5 million tonnes/year. The initial project would include two trains each processing about 1 bcfd of gas. The company said customer interest would determine future expansion.

Cheniere is in the process of pursuing contractual arrangements with natural gas buyers overseas and US producers interested in supplying the project.

Cheniere expects LNG exports could commence as early as 2015 and plans to make a request to the US Federal Energy Regulatory Commission to begin National Environmental Protection Act prefiling by the end of June. The company says the timing of actual construction will depend on regulatory approvals and a final investment decision contingent upon satisfactory construction contracts and securing sufficient long-term customer contracts. Cheniere expects to be able to offer bidirectional services at Sabine Pass at $1.40-1.75/MMbtu.

Cheniere says it can build liquefaction capacity at economics typically associated with expansion given that many of the needed components are already part of the receiving terminal, including five storage tanks with a total capacity of 16.6 bcf, two berths, and the 94-mile Creole Trail pipeline. Cheniere would reconfigure Creole Trail to be a bidirectional system.

Contact Christopher E. Smith at chriss@ogjonline.com.

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