Bechtel wins EPC contract for multi-billion-dollar LNG export terminal expansion

A digital rendering of the Port Arthur LNG export terminal phase 2 A digital rendering of the Port Arthur LNG export terminal phase 2 (Image courtesy of Bechtel)

US-based contractor Bechtel has signed a deal with liquefied natural gas (LNG) exporter Sempra to build the second phase of the Port Arthur LNG export project in Texas.

Bechtel did not reveal the size of the contract but the company is already building the first phase of the export terminal under an EPC deal worth around $10.5 billion.

The first phase is expected to have a capacity of 13 million tons per annum (Mtpa). The second phase will expand capacity to 26 Mtpa.

Under the fixed-price deal for the second phase, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities for the project. The scope of the agreement also includes the ability to conduct pre-final investment decision work to better assure project cost and schedule certainty.

But Bechtel stressed that the development of the Port Arthur LNG Phase 2 project remains subject to a number of risks and uncertainties, including completing the required commercial agreements, securing and maintaining all necessary permits, obtaining financing, and reaching a final investment decision.

The Port Arthur LNG Phase 1 project is currently under construction and consists of trains 1 and 2, as well as two LNG storage tanks and associated facilities.

Train 1 and train 2 are expected to start operating in 2027 and 2028, respectively.

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