Bechtel to construct $5.6bn liquefaction trains for Sabine Pass project in the US

Bechtel has received a full notice to proceed from Cheniere Energy Partners to build two liquefaction trains of the Sabine Pass liquefaction project located in the US.

The project is estimated to cost $5.6bn, of which $2bn will be equity and $3.6bn will be debt.

Cheniere Partners owns 100% of the Sabine Pass LNG terminal, which has a re-gasification and send-out capacity of 4 billion cubic feet per day and a storage capacity of 16.9 billion cubic feet equivalent, and is located on the Sabine Pass Channel in western Cameron Parish, Louisiana.

Cheniere Energy Partners chairman and CEO Charif Souki said the Sabine Pass LNG terminal will become the first facility in the US to export natural gas as LNG.

"Two years after announcing our plans to develop the liquefaction facility, we will begin construction," said Souki.

"In those two years, we were able to finalise long-term commercial arrangements with four global LNG buyers for over 2 billion cubic feet per day for 20 years, negotiate a construction agreement for the first 1billion cubic feet per day on a lump sum basis, and most importantly work with governmental agencies at the federal, state and local level to receive all necessary permits to begin construction on a new facility with no precedent in the lower 48.

"It is a testament to the flexibility of the US markets and institutions that a small company like ours was able to accomplish so much in a short time."

The first train will begin operations in 2015, with the second liquefaction train following six to nine months later.

Blackstone Energy Partners CEO David Foley said, "We are pleased to provide the growth capital to fund the construction of the first
LNG export facility in the continental United States, creating thousands of jobs for American workers and providing significant benefits to the US economy."

Sabine Pass Liquefaction has already recieved an initial advance of $100m on its previously announced credit facility.