US LNG exporting giant Cheniere said it has awarded a lump sum, turnkey, engineering, procurement and construction contract to compatriot Bechtel for the proposed Stage 3 expansion at its Corpus Christi export plant in Texas.
In addition, CCL Stage III, a unit of Cheniere, has released Bechtel to start early engineering, procurement and other site work at the expansion project under a limited notice to proceed.
The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.
Under the expansion, Cheniere plans to add up to seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa, with a total production capacity of more than 10 mtpa.
In December, Cheniere asked US energy regulators for an extension to construct the proposed expansion at its Corpus Christi plant until June 2027.
Bechtel has recently handed over operational control of the sixth train at the 30 mpta Sabine Pass export plant in Louisiana to Cheniere. The engineering firm also built the three Corpus Christi trains.
“Important steps” towards FID
“The signing of this EPC contract and the issuance of LNTP mark important steps towards a final investment decision on the project, which we expect to occur this summer,” Jack Fusco, Cheniere’s CEO said.
“We are excited to have the project underway and are focused on the remaining steps required in order to reach FID,” he said.
Fusco said that the Corpus Christi expansion project commences as global LNG market fundamentals highlight the “criticality of natural gas in the global energy mix.”
“We look forward to providing our customers with reliable and flexible LNG from the Corpus Christi Stage III Project starting in 2025,” he said.
Chart contract
Chart also won a contract related to the Corpus Christi expansion project.
The US firm said in a separate statement it has received additional limited notice to proceed for their IPMSR process and equipment activities.
In conjunction with the LNTP, Chart booked an order of $47.5 million for the project from Bechtel.
Also, Chart said it would begin recognizing revenue on this project in 2022 with a multi-year staggered delivery schedule.
