Cheniere signs $4.69 billion deal with Bechtel to expand LNG export capacity

May 28 (Reuters) – Cheniere Energy Partners said on Thursday it signed a contract with Bechtel Energy for engineering, procurement and construction of the first phase of its Sabine Pass LNG expansion project in Cameron Parish, Louisiana.

Here are more details:

• The Sabine Pass LNG terminal has natural gas liquefaction facilities with a total production capacity of over 30 million tonnes per annum of LNG in operation.

• The contract is valued at $4.69 billion, according to a filing on Thursday with the Securities and Exchange Commission.

• The terminal allows the U.S. to export its abundant shale gas (sourced from Permian and Haynesville basins), bolstering the U.S. trade balance and providing geopolitical allies with an alternative to Russian or Middle Eastern gas.

• The first phase of the project includes Train 7, a boil-off gas re-liquefaction unit and related infrastructure tied to the existing Sabine Pass LNG terminal.

• The company expects to reach a final investment decision on the first phase by early 2027.

• Cheniere also said it had issued Bechtel a limited notice to proceed, allowing early engineering and procurement work to begin.

• Phase 1 has an expected total production capacity of over 6 mtpa.

• Cheniere has to issue the full notice to proceed to Bechtel on or before May 21, 2028, or either party may terminate the contract, and Bechtel would be paid termination costs, according to the SEC filing.

(Reporting by Dharna Bafna in Bengaluru and Curtis Williams in Houston; Editing by Diti Pujara, Rod Nickel)