Bechtel bags $9.5bn EPC gig from Cheniere

Brent oil prices10 December 2013, News Wires – Houston-based Cheniere Energy has signed up Bechtel to carry out engineering, procurement and construction work at the proposed gas-liquefaction project in Corpus Christ, Texas, in deals worth a combined $9.5 billion.

Under the two lump sum turnkey deals, Bechtel will begin work next year on the three-train facility that is expected to begin operations in 2018.

The Corpus Christi plant includes up to three LNG trains, each with a design production capacity of around 4.5 million tonnes per annum of LNG. The work scope under the contracts also includes three LNG storage tanks with capacity of about 10.1 billion cubic feet equivalent and two berths that can accommodate vessels with capacity of up to 267,000 cubic metres.

The Stage 1 EPC contract – worth $7.1 billion – includes two LNG trains, two tanks, one complete berth and a second partial berth.

The Stage 2 EPC contract – worth around $2.4 billion – includes one LNG train, one additional tank and completion of the second berth.

The trains are expected to begin operations “on a staggered basis”, Cheniere said. A final investment decision on the project is expected next year.

EPC work on the $11 billion facility will begin next year after FID is declared.

Cheniere chief executive Charif Souki said Bechtel was selected in part because that company “has an extensive track record in building some of the largest LNG export production facilities in the world”.

Bechtel is also building Cheniere’s four-train Sabine Pass liquefaction plant in in Cameron Parish, Louisiana, a project that Souki said is “ahead of schedule”

The Corpus Christi plant is still awaiting approval from the Energy Department to export LNG to countries without free-trade agreements with the US. It is also awaiting a scheduling notice from the Federal Energy Regulatory Commission.

Last week, Cheniere said that it had signed the first sale and purchase agreement (SPA) for the Corpus Christi project. The customer, for 0.8 mtpa of LNG, was Pertamina of Indonesia

“(We) expect to enter into additional SPAs in due course,” Souki said.

– Upstream

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