Cheniere Energy Partners has disclosed the signing of a lump sum turnkey contract between its subsidiary, Sabine Pass Liquefaction, and Bechtel Oil, Gas, and Chemicals. This agreement pertains to the engineering, procurement, and construction of the third and fourth liquefaction trains adjacent to the Sabine Pass LNG terminal in Cameron Parish, Louisiana.
Sabine Liquefaction plans to authorize Bechtel to commence construction for the third and fourth liquefaction trains upon securing acceptable financing arrangements and reaching a final investment decision. The construction for these trains is slated to commence in the first half of 2013. Sabine Liquefaction previously greenlit Bechtel and initiated full construction for the first two liquefaction trains in August 2012.
Bechtel will employ the ConocoPhillips Optimized Cascade® technology for the design, construction, and commissioning of the liquefaction trains, a proven technology utilized in numerous LNG projects globally. Each train is expected to have a nominal capacity of approximately 4.5 million tonnes per annum.
The liquefaction trains will be constructed adjacent to the existing facilities at the Sabine Pass LNG terminal, which include five tanks with a storage capacity of 16.9 billion cubic feet equivalent, two docks capable of handling vessels up to 265,000 cubic meters, and vaporizers with regasification capacity of 4.0 billion cubic feet per day. Sabine Liquefaction has secured four long-term, 20-year sale and purchase agreements, representing around 90 percent of the nominal capacity of the four liquefaction trains.
Operations for the first liquefaction train are anticipated to commence as early as 2015, with subsequent liquefaction trains coming online in a staggered manner thereafter.
The total contract price for the Trains 3&4 EPC Contract is approximately $3.8 billion. The total expected costs for the third and fourth liquefaction trains, before financing costs, are estimated to range between $4.5 billion and $5.0 billion, inclusive of owner’s costs and contingencies.
Charif Souki, Chairman and CEO, expressed anticipation for the continued collaboration with Bechtel in the development and construction of the liquefaction trains at Sabine Pass. The company has also revealed plans for the development of a fifth and sixth liquefaction train, with Total Gas & Power North America, Inc. contracting for approximately half of the expected LNG production capacity of the fifth liquefaction train. Collaboration with Bechtel on the preliminary engineering for the fifth and sixth train is already underway, with the regulatory process expected to commence in the first half of 2013.
