Sempra and Bechtel sign EPC contract for Port Arthur LNG facility

Sempra Energy and Bechtel have signed an engineering, procurement and construction (EPC) contract for the Port Arthur liquified natural gas (LNG) project under development in Jefferson County, Texas, US.

Bechtel subsidiary Bechtel Oil, Gas, & Chemicals and Sempra Energy subsidiary Port Arthur LNG signed the contract.

The Port Arthur LNG terminal site occupies approximately 3,000 acres along the Sabine-Neches Ship Channel.

The companies expect the initial phase of the project to include two liquefaction trains and up to three LNG storage tanks. It will also require associated infrastructure to support the export of approximately 13.5 million tons per annum (Mtpa) of LNG.

Sempra Energy chairman and CEO Jeffrey Martin said: “Building new export infrastructure in the US is critical to providing overseas markets with cleaner fuel alternatives.

“Partnering with a world-class construction firm like Bechtel bolsters our execution plan for one of the world’s largest LNG development projects.”

Under the fixed-price contract, Bechtel’s subsidiary will carry out detailed engineering, procurement and construction work (EPC), as well as commissioning, performance testing and operator training activities.

According to Sempra, the contract includes continuing pre-final investment decision (FID) engineering to keep the project within cost projections and on schedule.

Bechtel chairman and CEO Brendan Bechtel said: “We are honoured and grateful that Sempra has chosen Bechtel as their trusted partner to help grow Sempra’s LNG business on the Gulf Coast.

“Together we will deliver an important, clean and sustainable energy source to the world while creating jobs and building economic opportunities for the Gulf Coast community.”

In January, Sempra LNG and Aramco Services Company signed an Interim Project Participation Agreement (IPPA) for the Port Arthur LNG export project.

This IPPA forms part of a heads of agreement (HOA) signed by the two companies to purchase 5Mtpa of LNG from phase one of the Port Arthur LNG export project.