Cheniere Energy Announces Multi-Billion Dollar Contract with Bechtel for Sabine Pass Expansion

Cheniere Energy, Inc. (NYSE:LNG) is included among the 14 Best Oil and Gas Stocks to Buy According to Hedge Funds.Cheniere Energy Announces Multi-Billion Dollar Contract with Bechtel for Sabine Pass Expansion

Cheniere Energy, Inc. (NYSE:LNG) is the largest producer of liquefied natural gas in the United States and the second-largest LNG operator in the world.

Cheniere Energy, Inc. (NYSE:LNG) announced on May 28 that it had signed a contract with Bechtel Corp for ​engineering, procurement, and construction of phase one of its Sabine Pass ‌LNG expansion project in Louisiana. The contract is valued at $4.69 billion and includes a single train, Train 7, a boil-off gas re-liquefaction unit, along with supporting infrastructure and tie-ins to the existing Sabine Pass LNG terminal.

Phase one has an expected total production capacity of over 6 mtpa of LNG. Cheniere revealed that it expects to reach a final investment decision on the first phase by early 2027. Notably, the company also gave Bechtel a “limited notice to proceed”, allowing early ​engineering and ⁠procurement work to begin.

The SPL Expansion Project is being executed in a phased manner and is designed to add up to 3 “large-scale” liquefaction trains with a combined capacity of about 20 mtpa to the existing terminal.

Jack Fusco, Chairman, President, and CEO of Cheniere, commented:

“We are pleased to once again partner with Bechtel on the first phase of the SPL Expansion Project, and we look forward to building upon the unmatched track record for execution excellence the Cheniere and Bechtel relationship has established while successfully building our leading LNG platform. The EPC contract and the issuance of LNTP mark important steps toward FID, which we expect to occur by early next year. We are excited to have the project underway and are laser-focused on the remaining steps required to reach FID. The SPL Expansion Project commences as LNG market dynamics highlight the criticality of secure supply in the global energy system. We look forward to bringing this much-needed LNG capacity to the market and providing our customers with reliable and flexible LNG from Train 7.”

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