Cheniere Energy Partners has entered into a lump-sum turnkey Engineering, Procurement, and Construction (EPC) contract with Bechtel Energy for Phase 1 of the Sabine Pass LNG expansion project in Louisiana. The company has also issued a limited notice to proceed, authorizing the commencement of early engineering and procurement activities.

The agreement encompasses Phase 1 of the expansion, which includes the construction of Train 7, a boil-off gas re-liquefaction unit, and supporting infrastructure to connect with the existing Sabine Pass LNG terminal.

Phase 1 is projected to have an annual LNG production capacity exceeding 6 million tonnes, inclusive of estimated debottlenecking capacity. The full Sabine Pass expansion project is planned to include up to three large-scale liquefaction trains, with a total peak capacity of approximately 20 million tonnes per year, including debottlenecking and associated infrastructure.

Cheniere stated that the project will be developed in phases. The final investment decision for Phase 1 is still pending regulatory approvals and the completion of financing arrangements. The project authorization application submitted to the U.S. Federal Energy Regulatory Commission and the application to the Department of Energy for LNG exports to non-Free Trade Agreement countries remain under review.

The company anticipates making the final investment decision for Phase 1 in early 2027.

Jack Fusco, Chairman, President, and CEO of Cheniere, commented, "We are pleased to partner with Bechtel once again for Phase 1 of the SPL expansion project and look forward to building upon our unparalleled track record of excellent execution developed through our successful collaboration in creating a leading LNG platform. The awarding of the EPC contract and the issuance of the LNTP are significant steps toward the final investment decision, which we expect to make early next year. We are excited about the project's progress and are committed to completing the remaining necessary work to achieve the final investment decision."

"The initiation of the SPL expansion project comes at a time when LNG market dynamics underscore the critical importance of secure supply in the global energy system. We look forward to bringing these much-needed LNG volumes to market and providing our customers with reliable, flexible LNG through Train 7."

Cheniere Partners owns the Sabine Pass LNG terminal in Louisiana, which currently has an operational annual LNG production capacity of over 30 million tonnes.