Building and Construction

This LNG Export Developer Just Hired an EPC Contractor

10 July 2018

The developer of a liquefaction project in Port Arthur, Texas, has hired Bechtel as the engineering, procurement, construction and commissioning contractor.

Bechtel will perform the engineering, execution planning and related activities necessary to prepare and finalize a lump-sum EPC contract for the liquefied natural gas (LNG) export project, which is being developed by Port Arthur LNG, an affiliate of Sempra LNG & Midstream.

The proposed liquefaction project is designed to include two natural gas liquefaction trains to enable the long-term sale of approximately 11 million tonnes per annum (mtpa) of LNG; feed gas pre-treatment facilities; natural gas liquids and refrigerant storage; up to three LNG storage tanks; two marine berths and associated facilities.

Development of the project hinges on completing the required commercial agreements (including a definitive EPC contract), securing permits and approvals, obtaining financing and incentives, reaching a final investment decision, and other factors associated with the investment.

In late June, Polish Oil & Gas Co. agreed to basic terms around a 20-year deal to buy 2 mtpa of LNG. Cargoes could be supplied starting in 2023 from the LNG facility.

In 2017, Sempra LNG & Midstream signed a Memorandum of Understanding (MOU) with Korea Gas Corp. setting up a framework for cooperation, including engineering and construction, operations, equity ownership and offtake of LNG.

Port Arthur LNG received authorization from the U.S. Department of Energy in August 2015 to export up to 10 mtpa of LNG to countries with which the U.S. has free-trade agreements. The developer also has a pending application to export LNG to non-free trade agreement countries.

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