Cheniere taps Bechtel to engineer LNG expansion at Louisiana export site

Bechtel on Friday signed a lump sum turnkey contract with Cheniere Energy for the engineering, procurement, and construction of the third and fourth liquefaction trains to be constructed adjacent to the Sabine Pass liquefied natural gas (LNG) terminal in Cameron Parish, Louisiana.

Cheniere said it intends to give Bechtel a notice to proceed (NTP) with construction for the third and fourth liquefaction trains upon achieving acceptable financing arrangements and making a final investment decision.

Construction for the third and fourth trains is expected to begin in the first half of 2013. Sabine Liquefaction issued the NTP to Bechtel and commenced full construction for the first two liquefaction trains in August 2012.

The liquefaction trains are being designed, constructed, and commissioned by Bechtel using the ConocoPhillips Optimized Cascade technology, a proven technology deployed in numerous LNG projects around the world.

Nominal capacity for each train will be approximately 4.5 million tpy. The liquefaction trains will be built next to the existing facilities at the Sabine Pass LNG terminal, which include five tanks with storage capacity of 16.9 billion cubic feet equivalent (Bcfe), two docks that can handle vessels up to 265,000 cubic meters, and vaporizers with regasification capacity of 4.0 billion cubic feet per day (Bcf/d).

"We look forward to our continued collaboration with Bechtel on the development and construction of our liquefaction trains at Sabine Pass. Bechtel built our existing LNG terminal on time and on budget and has an extensive track record in building some of the largest LNG export production facilities in the world," said Charif Souki, CEO of Cheniere.

"Bechtel has started construction on our first two liquefaction trains, which are expected to be completed ahead of the EPC schedule, and we expect to commence construction on the third and fourth liquefaction trains in the first half of 2013," Souki added.

"Cheniere is at the forefront of North America’s LNG industry, and we appreciate their trust and confidence in delivering this important project," said Jack Futcher, president of Bechtel’s oil, gas, and chemicals business unit. "We look forward to helping them achieve their vision to transform Sabine Pass into a world-class facility."

Cheniere recently announced that it is also planning to develop a fifth and sixth liquefaction train at Sabine Pass. The company has begun working with Bechtel on the preliminary engineering for a fifth and sixth train and said it expects to commence the regulatory process in the first half of 2013.

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