Cheniere Energy Partners said its subsidiary Sabine Pass Liquefaction Stage V has signed a lump-sum, turnkey EPC contract with Bechtel Energy for the first phase of its Sabine Pass expansion project and has issued a limited notice to proceed for early engineering and procurement.
The first phase, called Phase 1, centers on a single liquefaction train, Train 7, plus a boil-off gas re-liquefaction unit, supporting infrastructure and tie-ins to the existing Sabine Pass LNG terminal. Including estimated debottlenecking opportunities, Phase 1 is expected to deliver more than 6 million tonnes per annum of LNG production capacity.
The broader expansion project is being designed for up to three large-scale liquefaction trains with a total peak production capacity of up to about 20 mtpa, including debottlenecking and infrastructure.
Cheniere said the project is commercially supported by long-term agreements with creditworthy counterparties. Final investment decision on Phase 1 still depends on regulatory approvals and financing. The company said federal approvals remain pending, including the FERC application to site, construct and operate the project and the DOE application to export LNG to non-free-trade-agreement countries.
Cheniere now expects to reach FID on Phase 1 by early 2027.
At the existing Sabine Pass LNG terminal, Cheniere said it has more than 30 mtpa of LNG production capacity in operation. The site also includes five LNG storage tanks, vaporizers and three marine berths, and the company owns the Creole Trail Pipeline connecting the terminal to interstate and intrastate pipelines. Following these announcements, the company's shares moved 0.21%, and are now trading at a price of $60.75. For more information, read the company's full 8-K submission here.
