Cheniere Energy Partners’ subsidiary, Sabine Pass Liquefaction Stage V (SPLV), has signed a lump sum, turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy for Phase 1 of the SPL Expansion Project.

The development is located in Cameron Parish, Louisiana, US.

Bechtel has also been granted limited notice to proceed (LNTP), enabling the company to begin early engineering and procurement activities linked to Phase 1.

The SPL Expansion Project is set to include up to three major liquefaction trains, targeting a combined peak production capacity of roughly 20 million tonnes per annum (mtpa) of liquefied natural gas (LNG). It also includes opportunities to increase output and add additional infrastructure.

The project will be developed in a phased manner.

Under the terms of the EPC contract, Bechtel will deliver the first phase, which covers Train 7, a boil-off gas re-liquefaction unit, and other supporting facilities that will be integrated with the existing Sabine Pass LNG terminal.

Phase 1 is expected to provide more than 6mtpa of LNG production after accounting for estimated debottlenecking.

The commercial foundation for Phase 1 includes long-term agreements with established counterparties.

Cheniere Partners expects to make a final investment decision (FID) on Phase 1 by early 2027, pending the receipt of necessary regulatory approvals and arranging appropriate financing.

Applications have been submitted to the US Federal Energy Regulatory Commission for permits to build and operate the expansion. The Department of Energy is reviewing an application for approval to export LNG to countries without a free trade agreement.

Cheniere Partners chairman, president and CEO Jack Fusco said: “We are pleased to once again partner with Bechtel on the first phase of the SPL Expansion Project, and we look forward to building upon the unmatched track record for execution excellence the Cheniere and Bechtel relationship has established while successfully building our leading LNG platform.

“The EPC contract and the issuance of LNTP mark important steps toward FID, which we expect to occur by early next year. We are excited to have the project under way and are laser-focused on the remaining steps required to reach FID.”

The existing Sabine Pass LNG terminal features six trains, five LNG storage tanks, vapourisers and three marine berths. The 30mtpa terminal produced its first LNG in 2016.

Cheniere Partners also operates the Creole Trail Pipeline, which links the terminal to multiple large pipeline networks.

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