Cheniere lets contract for pre-FID Sabine Pass Expansion with limited notice to proceed

Cheniere Energy Partners LP subsidiary Sabine Pass Liquefaction Stage V LLC (SPLV) let a lump sum, turnkey, engineering, procurement, and construction (EPC) contract to Bechtel Energy Inc. with a limited notice to proceed with early engineering and procurement for the initial phase of the SPL Expansion Project.

The contract is the next step in the Houston-based company’s multi-phased plan to expand LNG exports from the existing 30-million tonnes/year (tpy) Sabine Pass LNG plant in Cameron Parish, La., on the Sabine Pass channel. Cheniere expects to reach a final investment decision on Phase 1 by early 2027.

The SPL Expansion Project is being developed for up to three large-scale liquefaction trains with an expected total peak production capacity of up to about 20 million tpy of LNG, inclusive of estimated debottlenecking opportunities and supporting infrastructure.

The EPC agreement with Bechtel for Phase 1 includes a single train, Train 7, a boil-off gas re-liquefaction unit, along with supporting infrastructure and tie-ins to the existing Sabine Pass LNG plant. Inclusive of estimated debottlenecking, Phase 1 has an expected total production capacity of over 6 million tpy of LNG.

The Federal Energy Regulatory Commission (FERC) application for authorization to site, construct and operate the SPL 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.