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Corpus Christi Liquefaction and Bechtel enter into turnkey contracts

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LNG Industry,

Cheniere Energy Inc.’s wholly owned subsidiary, Corpus Christi Liquefaction, LLC and Bechtel Oil, Gas and Chemicals Inc. have entered into two lump sum turnkey contracts for the engineering, procurement and construction (EPC) of LNG trains and related facilities being developed near Corpus Christi, Texas, USA.

The Corpus Christi Liquefaction project is expected to be constructed in stages, with each LNG train commencing operations on a staggered basis. Work under the EPC contract is expected to commence in 2014, subject to Corpus Christi Liquefaction reaching a positive final investment decision (FID). Operation of the first LNG train is expected to commence in 2018. 

Corpus Christi Liquefaction project

The Corpus Christi Liquefaction project includes up to three LNG trains, each with a design production capacity of approximately 4.5 million tpa of LNG, three LNG storage tanks with capacity of approximately 10.1 billion ft3 equivalent and two berths that can accommodate vessels with capacity of up to 267 000 m3.  The Stage 1 EPC contract includes two LNG trains, two tanks, one complete berth and a second partial berth. The Stage 2 EPC contract includes one LNG train, one additional tank and completion of the second berth. The LNG trains are being designed, constructed and commissioned by Bechtel using the ConocoPhillips Optimized Cascade® technology.

The contract price of the Stage 1 EPC contract is approximately US$ 7.1 billion and the contract price for the Stage 2 EPC contract is approximately US$ 2.4 billion. Total expected costs for the three LNG trains and the related facilities before financing costs are estimated to be between US$ 10.5 billion and US$ 11 billion, including an estimate for owner's costs and contingencies. 

LNG experience

“We have selected Bechtel as our EPC contractor for our next LNG export project being developed near Corpus Christi, Texas. Bechtel has an extensive track record in building some of the largest LNG export production facilities in the world and is the EPC contractor on our LNG export project at the Sabine Pass LNG terminal. Bechtel built our existing regasification facilities at the Sabine Pass LNG terminal on time and on budget and is ahead of schedule on the four LNG trains currently under construction,” said Charif Souki, Chairman and CEO.

 “Our Corpus Christi Liquefaction Project is now fourth on the US DOE's order of precedence for non-FTA LNG export approvals and is waiting to receive a FERC scheduling notice.  We recently announced the first LNG sale and purchase agreement for the Corpus Christi Liquefaction Project with Pertamina for approximately 0.8 million tpa and expect to enter into additional SPAs in due course.  We expect to reach FID for the Corpus Christi Liquefaction Project in 2014.”

Adapted from press release by

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