South Texas LNG project issues EPC contracts

Corpus Christi Liquefaction LLC, a unit of Cheniere Energy Inc., Houston, has let an engineering, procurement, and construction contract for LNG trains and related facilities to Bechtel (OGJ Online, Dec. 20, 2011).

Yet to be approved by the US Federal Energy Regulatory Commission, the three-train, 13.5-million tonne/year Corpus Christi project would be built in two stages. Work under the contract is expected to begin in 2014, subject to Corpus Christi Liquefaction’s reaching a final investment decision. Operation of the first LNG train would begin 2018.

Stage 1 EPC contract includes two LNG trains, two tanks, one complete berth, and a second partial berth. Stage 2 EPC contract includes one LNG train, one additional tank, and completion of the second berth, according to Bechtel.

The LNG trains are being designed, constructed, and commissioned by Bechtel using ConocoPhillips’s Optimized Cascade technology. In addition to the three trains, construction would also install three LNG storage tanks with total capacity of about 10.1 bcf and two berths to accommodate vessels of up to 267,000 cu m.

Contract price of Stage 1 is about $7.1 billion; contract price for Stage 2 is about $2.4 billion. Total expected costs for the three trains and the related facilities before financing costs will be $10.5-11 billion, including an estimate for owner's costs and contingencies, said Bechtel.

Bechtel is also the EPC contractor on Cheniere’s LNG export project at the Sabine Pass LNG terminal (OGJ Online, Nov. 16, 2011), built the original regasification terminal there, and is ahead of schedule on the four LNG trains currently under construction, according to Charif Souki, Cheniere’s chairman and chief executive officer.

Cheniere recently announced the first LNG sale and purchase agreement for the Corpus Christi project with Pertamina for about 800,000 tpy and expects to enter into additional SPAs with a final investment decision for the Corpus Christi liquefaction next year.

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