Cheniere Partners Enters Lump Sum Turnkey Contract with Bechtel for Trains 3, 4 at Sabine Pass
Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE: CQP) announced today that its subsidiary, Sabine Pass Liquefaction, LLC ("Sabine Liquefaction"), and Bechtel Oil, Gas and Chemicals, Inc. ("Bechtel") have entered into a lump sum turnkey contract for the engineering, procurement and construction of the third and fourth liquefaction trains to be constructed adjacent to the Sabine Pass LNG terminal located in Cameron Parish, Louisiana (the "Trains 3&4 EPC Contract"). Sabine Liquefaction intends to give Bechtel a notice to proceed ("NTP") with construction for the third and fourth liquefaction trains upon achieving acceptable financing arrangements and making a final investment decision. Construction for the third and fourth trains is expected to begin in the first half of 2013. Sabine Liquefaction issued NTP to Bechtel and commenced full construction for the first two liquefaction trains in August 2012.
The liquefaction trains are being designed, constructed and commissioned by Bechtel using the ConocoPhillips Optimized Cascade® technology, a proven technology deployed in numerous LNG projects around the world. Nominal capacity for each train will be approximately 4.5 million tonnes per annum. The liquefaction trains will be built next to the existing facilities at the Sabine Pass LNG terminal, which include five tanks with storage capacity of 16.9 billion cubic feet equivalent ("Bcfe"), two docks that can handle vessels up to 265,000 cubic meters and vaporizers with regasification capacity of 4.0 billion cubic feet per day ("Bcf/d"). Sabine Liquefaction has entered into four long-term, 20-year sale and purchase agreements that in aggregate represent approximately 90 percent of the nominal capacity of the four liquefaction trains. Operations for the first liquefaction train are expected to commence as early as 2015, with each liquefaction train thereafter coming on line on a staggered basis.
The total contract price of the Trains 3&4 EPC Contract is approximately $3.8 billion. Total expected costs for the third and fourth liquefaction trains before financing costs are estimated to be between $4.5 billion and $5.0 billion, including an estimate for owner's costs and contingencies.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.