Cheniere Energy Partners, L.P., through its subsidiary Sabine Pass Liquefaction Stage V, LLC (SPLV), has entered into a lump-sum turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy, Inc. for the first phase of the Sabine Pass (SPL) Expansion Project. SPLV has also authorized Bechtel to begin early engineering and procurement activities under a limited notice to proceed (LNTP).
The SPL Expansion Project is designed to include up to three large-scale liquefaction trains, with a projected peak production capacity of approximately 20 million tonnes per annum (mtpa) of LNG, including debottlenecking opportunities and supporting infrastructure. Phase 1 will consist of Train 7, a boil-off gas re-liquefaction unit, and related infrastructure tied into the existing Sabine Pass LNG Terminal. Including anticipated debottlenecking gains, the phase is expected to add more than 6 mtpa of LNG production capacity.
The project is supported by long-term agreements with established counterparties and remains subject to regulatory approvals and financing arrangements before reaching a final investment decision (FID). Applications with the Federal Energy Regulatory Commission (FERC) and the U.S. Department of Energy (DOE) are still under review, with Cheniere targeting FID for Phase 1 in early 2027.
Commenting on the development, Jack Fusco, Chairman, President and Chief Executive Officer of Cheniere, 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 underway and are laser-focused on the remaining steps required to reach FID. The SPL Expansion Project commences as LNG market dynamics highlight the criticality of secure supply in the global energy system. We look forward to bringing this much-needed LNG capacity to the market and providing our customers with reliable and flexible LNG from Train 7.”
Source: Cheniere Energy