Updated Bechtel Port Arthur LNG Deal Worth $10.5B

Updated Bechtel Port Arthur LNG Deal Worth $10.5B
The amended deal includes an updated price of approximately $10.5 billion.

Sempra Infrastructure has announced that Port Arthur LNG and Bechtel Energy have amended and restated the fixed-price engineering, procurement and construction (EPC) contract for the proposed Phase 1 liquefaction project under development in Jefferson County, Texas.

The amended deal includes an updated price of approximately $10.5 billion, according to Sempra Infrastructure, which outlined that, 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.

“We are excited to achieve this milestone with Bechtel,” Justin Bird, the CEO of Sempra Infrastructure, said in a company statement,

“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,” he added.

Paul Marsden, the president of Bechtel Energy, said, “we are delighted to continue our partnership with Sempra Infrastructure to 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 added.

Port Arthur LNG Phase 1 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, Sempra Infrastructure outlined. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development, the company noted.

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. 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, Sempra Infrastructure highlighted.

The Port Arthur liquefaction project is being developed to help meet global demand for LNG, according to the Port Arthur LNG website, which notes that the proposed liquefaction project would be a low-cost liquefaction facility providing a reliable supply of LNG to energy markets around the world.

The project would use a portion of Sempra’s property along the Sabine-Neches ship channel in Port Arthur, Texas, that provides direct access to the Gulf of Mexico, the site highlights.

To contact the author, email andreas.exarheas@rigzone.com


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