Sempra, Bechtel Amend $10.5B Deal For Port Arthur LNG
Port Arthur LNG and Bechtel Energy have amended and restated the fixed-price engineering, procurement, and construction contract for the proposed Phase 1 liquefaction project in Jefferson County.
The amended contract includes an updated price of approximately $10.5 billion. Under the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing, and operator training activities for Phase 1 of the project.
The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 million tons per annum of LNG.
It is worth noting that a final decision on the ultimate local investment of Port Arthur LNG is supposed to happen in 2023.
“We are excited to achieve this milestone with Bechtel. The execution of the final contract is a critical step in advancing Phase 1 of Port Arthur LNG toward a final investment decision. Based on robust customer interest, we know that Port Arthur LNG is highly attractive to the global market, and we look forward to providing customers with access to secure, abundant, and reliable U.S. LNG,” said Justin Bird, CEO of Sempra Infrastructure.
Paul Marsden, President of Bechtel Energy, said the partnership with Sempra Infrastructure will deliver cleaner and more affordable energy to communities around the world. “Alongside Sempra Infrastructure, Bechtel is ready to continue active construction in the Gulf Coast and bring more opportunities to the local region,” Marsden said.
President of the project operator, Sempra Infrastructure, Dan Brouillette previously stated other media outlets: “I think it is exciting for the people who live in Port Arthur, Texas, because there will be a bunch of jobs come that way. It is exciting for us, as a company, because this is what we do for a living. It creates value for our owners and our shareholders. It is a great opportunity for Sempra Infrastructure, but it is a great opportunity for America.”
A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.
Earlier this year, Sempra Infrastructure announced the substantial completion of marketing for Phase 1 of the proposed Port Arthur LNG Project with the signing of a series of non-binding agreements with PGNiG, RWE, INEOS, and ConocoPhillips.
Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching an affirmative final investment decision, among other factors.
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