Gas

Sempra, Bechtel agree on EPC deal for Texas LNG project

Subsidiaries of Sempra Energy and Bechtel have signed a deal for the latter’s engineering, procurement and construction services on the Port Arthur liquefied natural gas (LNG) project along the Texas Gulf Coast.

The Port Arthur LNG project will include two liquefaction trains, two LNG storage tanks, a marine berth, loading facilities and related infrastructure with a capacity of around 13.5 million metric tonnes annually (Mtpa)  of LNG.

“Building new export infrastructure in the U.S. is critical to providing overseas markets with cleaner fuel alternatives,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “Partnering with a world-class construction firm like Bechtel bolsters our execution plan for one of the world’s largest LNG development projects.”

Per the EPC contract, Bechtel will perform various testing and training services for the project, as well as investment decision engineering.

Additionally, the project site sits on 3,000 acres along the Sabine-Neches waterway, with the potential to be one of the largest LNG export projects in North America. The area can potentially hold eight liquefaction trains and 45 Mtpa of capacity.

“Port Arthur LNG plays an important role in Sempra’s goal of becoming one of North America’s largest developers of liquefaction-export infrastructure projects and we look forward to continuing to move the project forward,” added Martin.

Sempra recently signed an Interim Project Participation Agreement (IPPA) with Aramco Services Company (Saudi Arabia) for the project. This agreement could result in five Mtpa of LNG and a 25% equity investment. The company also recently entered an agreement with Polish Oil and Gas Company for two Mtpa of LNG per year.

The project was authorized by the U.S. Department of Energy to export LNG globally. The Federal Energy Regulatory Commission approved the project in April 2019.

The project is estimated to support close to 5,000 jobs, nearly 200 being long-term jobs to operate and maintain the facility.

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