Bechtel signs EPC deal for LNG export projectDavid Wagman | March 03, 2020
Sempra Energy said it signed a fixed-price engineering, procurement and construction (EPC) contract with Bechtel for the Port Arthur LNG liquefaction project under development in Port Arthur, Texas.
As part of the contract, Bechtel Oil, Gas and Chemicals, Inc. will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities for the project. The scope of the agreement also includes continuing pre-final investment decision engineering to better ensure project cost and schedule certainty.
The value of the contract was not disclosed.
The Port Arthur LNG development project is expected to initially include two liquefaction trains, two liquefied natural gas (LNG) storage tanks, a marine berth and associated loading facilities and related infrastructure necessary to provide liquefaction services, with a nameplate capacity of approximately 13.5 million tonnes per annum (Mtpa) of LNG.
The project site sits on nearly 3,000 acres of land along three miles of the Sabine-Neches waterway and has expansion capabilities of up to eight liquefaction trains and approximately 45 Mtpa of capacity.
In January, Sempra LNG signed an Interim Project Participation Agreement (IPPA) with Aramco Services Company, a unit of Saudi Aramco, for the proposed project. The two companies in May 2019 had signed an agreement for the potential purchase of 5 Mtpa of LNG and a 25% equity investment in the project. In December 2018, Port Arthur LNG entered into an agreement with Polish Oil and Gas Company for the sale and purchase of 2 Mtpa of LNG per year.
The Port Arthur LNG development project received authorization from the U.S. Department of Energy to export domestically produced LNG to countries that do not have a free trade agreement with the U.S. in May 2019. Additionally, the Federal Energy Regulatory Commission issued the approval to site, construct and operate the liquefaction-export facility in April 2019.
A development decision is contingent upon obtaining additional customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, incentives and other factors, and reaching a final investment decision.