Sempra and Bechtel conclude final $10.5 bln EPC deal for Port Arthur LNG
Sempra Infrastructure, a subsidiary of Sempra, and Bechtel Energy have amended and restated the fixed-price engineering, procurement and construction (EPC) contract for the proposed Phase 1 of the Port Arthur LNG project under development in Jefferson County, Texas.
The amended contract includes an updated price of approximately $10.5 billion, Sempra Infrastructure said in a statement.
Under the contract, Bechtel will deliver the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities for Phase 1 of the project.
The Port Arthur LNG Phase 1 project 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 tonnes per annum of LNG.
A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development, the developer stated.
According to Justin Bird, CEO of Sempra Infrastructure, the execution of the final contract is a milestone and a critical step in advancing Phase 1 of Port Arthur LNG toward a final investment decision.
“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”, added Paul Marsden, President of Bechtel Energy.
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 with the Polish Oil & Gas Company (PGNiG), RWE Supply & Trading, INEOS Energy Trading Ltd., and ConocoPhillips.
Additionally, the US LNG infrastructure company signed a deal with compatriot utility Entergy Texas to accelerate the deployment of renewable energy at Port Arthur LNG facilities.
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