Cheniere Energy signs $9.5bn worth EPC contracts with Bechtel

Cheniere Energy’s wholly-owned subsidiary Corpus Christi Liquefaction has signed an agreement with Bechtel to perform engineering, procurement and construction (EPC) work at the proposed gas-liquefaction project in Corpus Christi, Texas, in deals worth a combined $9.5bn.

The two lump sum turnkey contracts pertain to EPC of LNG trains as well as related facilities.

According to the US-based Cheniere Energy, the Corpus Christi Liquefaction project including up to three LNG trains, is expected to be constructed in stages.

Each LNG train will have a design production capacity of about 4.5 million tonnes per annum (tpa) of LNG and commence operations on a staggered basis.

The project also includes three LNG storage tanks with capacity of about 10.1 billion cubic feet equivalent (cfe), and two berths that can house vessels with capacity of up to 267,000m³.

Under stage 1 of the contract, two LNG trains, two tanks, one complete berth and a second partial berth will be constructed and stage 2 includes one LNG train, one additional tank and completion of the second berth.

Bechtel will use the ConocoPhillips Optimized Cascade technology to design, construct and commission the LNG trains.

The three LNG trains and the related facilities before financing costs are expected to have costs ranging between $10.5bn and $11bn, including an estimate for owner’s costs and contingencies.

Cheniere Energy Chairman and CEO Charif Souki said: "Bechtel built our existing regasification facilities at the Sabine Pass LNG terminal on time and on budget and is ahead of schedule on the four LNG trains currently under construction.

"Our Corpus Christi Liquefaction Project is now fourth on the U.S. DOE’s order of precedence for non-FTA LNG export approvals and is waiting to receive a FERC scheduling notice."

Subject to Corpus Christi Liquefaction reaching a positive final investment decision (FID), work under the contract is expected to commence in 2014 and the first train is set to be operational in 2018.

The company hopes to reach FID for the Corpus Christi Liquefaction Project in 2014.

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Image: Cheniere signs two contracts worth $9.5bn with Bechtel for liquefaction project. Photo: courtesy of PRNewsFoto/CHENIERE ENERGY