Bechtel in charge of EPC scope for Cheniere’s LNG terminal expansion project

May 29, 2026, by Melisa Cavcic

Sabine Pass Liquefaction Stage V, a subsidiary of U.S. energy player Cheniere Energy Partners, has tasked Bechtel, an American engineering, procurement, construction, and project management player, with helping bring to life a liquefied natural gas (LNG) expansion project in Louisiana, United States.

Cheniere’s Sabine Pass LNG; Source: Bechtel

Cheniere has entered into a lump sum, turnkey, engineering, procurement, and construction (EPC) contract with Bechtel for the first phase of the SPL expansion project and given the firm the green light to start early engineering and procurement for Phase 1 under a limited notice to proceed (LNTP). The full construction is expected to begin in early 2027.

This project, being executed in a phased approach, will entail up to three large-scale liquefaction trains with an expected total peak production capacity of up to approximately 20 million tonnes per annum (mtpa) of LNG, inclusive of estimated debottlenecking opportunities and supporting infrastructure.

Jack Fusco, Cheniere’s Chairman, President, and Chief Executive Officer, 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.”

The Federal Energy Regulatory Commission (FERC) application for authorization to site, construct, and operate the SPL expansion project, as well as the Department of Energy (DOE) application authorizing the export of LNG to non-free trade agreement (non-FTA) countries, remain pending.

Cheniere expects to reach a final investment decision (FID) on Phase 1 by early 2027. Bechtel’s EPC deal for Phase 1 encompasses 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.

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Fusco highlighted: “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.”

Phase 1, which has an expected total production capacity of over 6 mtpa of LNG, inclusive of estimated debottlenecking, is commercially underpinned by long-term agreements with creditworthy counterparties, with a positive FID subject to, among other things, receipt of necessary regulatory approvals and an acceptable financing arrangement.

Paul Marsden, President of Bechtel’s Energy business, noted: “The decision to move forward with Train 7 at Sabine Pass reflects something bigger than a single project — it signals the next phase of U.S. energy infrastructure growth. As global energy demand rises and countries seek secure, reliable supply, LNG will continue to play an essential role in the energy mix for decades to come.

“Sabine Pass helped establish the United States as a global LNG leader ten years ago, and today’s milestone demonstrates how that leadership continues to evolve. Over the last decade, Bechtel and Cheniere have shown what is possible when world-class execution meets long-term vision — delivering complex infrastructure safely, predictably, and at scale.

“Train 7 represents the next chapter in a partnership that has helped reshape global energy markets. We are proud to continue supporting Cheniere as it expands the infrastructure needed to strengthen U.S. energy leadership and help meet growing demand around the world.”

Cheniere owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which has natural gas liquefaction facilities with a total production capacity of over 30 mtpa of LNG in operation. This LNG terminal has operational regasification facilities, covering five LNG storage tanks, vaporizers, and three marine berths.

The firm also owns the Creole Trail Pipeline, which interconnects the terminal with multiple large interstate and intrastate pipelines. The EPC award to Bechtel comes shortly after the U.S. Energy Department approved a 12% expansion in exports at Cheniere’s Corpus Christi LNG terminal in Texas.