Contract signed for two LNG export units

A Cheniere Energy Partners LP subsidiary and Bechtel Oil, Gas and Chemicals Inc. have entered into a $3.8 billion lump sum contract for the engineering, procurement and construction of the third and fourth natural gas liquefaction units at the Sabine Pass LNG export terminal in Cameron Parish.

Sabine Pass Liquefaction LLC said it intends to give Bechtel a notice to proceed with construction after getting acceptable financing and making a final investment decision.

Construction of the two units is expected to begin in the first half of 2013.

Bechtel started construction of the first two liquefaction units in August 2012.

Capacity for each unit will be about 4.5 million tons per year.

The units are being built next to existing facilities at the Sabine Pass LNG terminal, which include five tanks with storage capacity of 16.9 billion
cubic feet equivalent; 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.

Total costs for the third and fourth liquefaction units before financing costs are estimated to be between $4.5 billion and $5.0 billion, including an estimate for owner’s costs and contingencies.

“We look forward to our continued collaboration with Bechtel on the development and construction of our liquefaction trains at Sabine Pass. Bechtel built our existing LNG terminal on time and on budget and has an extensive track record in building some of the largest LNG export production facilities in the world,” said Charif Souki, Chairman and CEO.

In addition, Sabine Liquefaction recently announced that it has begun working with Bechtel on the preliminary engineering for its fifth and sixth units and expects to begin the regulatory process for approval in the first half of 2013.