Sabine Pass Liquefaction Stage V, a subsidiary of US energy company Cheniere Energy Partners, has commissioned Bechtel, a US engineering, procurement, construction and project management company, to help bring a liquefied natural gas (LNG) expansion project to life in Louisiana, US.
Cheniere has entered into a lump sum, turnkey, engineering, procurement and construction (EPC) contract with Bechtel for the first phase of the project. SPL expansion project The company was given the green light to begin early phase 1 engineering and procurement work under a Limited Notice to Proceed (LNTP). Full construction is expected to begin in early 2027.
This project, which is being implemented in phases, will require up to three large-scale liquefaction lines with an expected total production capacity of approximately 20 million tons per year of LNG, including estimated debottlenecking opportunities and supporting infrastructure.
Jack FuscoCheniere Chairman, President and CEO commented: “We are pleased to once again partner with Bechtel on the first phase of this LNG pipeline expansion project, and look forward to building on the unparalleled track record of execution excellence that the Cheniere-Bechtel relationship has established while successfully building our leading LNG platform. The EPC contract and issuance of the LNTP represent important steps toward FID, which we expect to occur by early next year.”
A Federal Energy Regulatory Commission (FERC) application for a license to site, build and operate the SPL Expansion Project, as well as a Department of Energy (DOE) application permitting the export of LNG to non-FTA countries (non-FTA members), remain pending.
Cheniere expects to reach a final investment decision (FID) on Phase 1 by early 2027. Bechtel’s EPC deal for Phase 1 includes one train, Train 7, and a boil-off gas re-liquefaction unit, along with supporting infrastructure and connections to the existing network. Sabine Pass LNG Lounge.
Fusco Highlights: “We are excited to get the project underway and are very focused on the remaining steps required to reach FID. The SPL expansion project begins as LNG market dynamics highlight the importance of secure supply in the global energy system. We look forward to bringing much-needed LNG capacity to market and providing our customers with reliable and resilient LNG from Train 7.”
The first phase, which has an expected total production capacity of more than 6 million tons per annum of LNG, including estimated debottlenecking, is commercially supported by long-term agreements with creditworthy counterparties, with positive FID approval subject to, among other things, the receipt of necessary regulatory approvals and acceptable financing arrangements.
Paul MarsdenThe head of Bechtel’s energy business noted: “The decision to move forward with construction of Train 7 in the Sabine Pass reflects something bigger than just one project – it signals the next phase of U.S. energy infrastructure growth. As global energy demand rises and countries seek safe, reliable supplies, LNG will continue to play an essential role in the energy mix for decades to come.”
“Sabine Pass helped establish the United States as a global LNG leader ten years ago, and today’s milestone demonstrates how that leadership continues to evolve. Over the past decade, Bechtel and Cheniere have demonstrated what can be achieved when world-class execution meets long-term vision – delivering complex infrastructure safely, predictably, and at scale.”
“Train 7 represents the next chapter in a partnership that has helped reshape global energy markets. We are proud to continue supporting Cheniere as it expands the infrastructure needed to advance America’s energy leadership and help meet growing demand around the world.”
Cheniere owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which has natural gas liquefaction facilities with a total production capacity of more than 30 million tons per year of LNG in operation. This LNG terminal contains operational regasification facilities, covering five LNG storage tanks, vaporizers, and three offshore berths.
The company also owns the Creole Trail Pipeline, which connects the terminal to several large interstate and intrastate pipelines. Bechtel’s EPC award comes shortly after the U.S. Department of Energy award consent 12% expansion in exports at Cheniere’s Corpus Christi LNG terminal in Texas.
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