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Bechtel to carry out EPC work for Port Arthur liquefaction project

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Tanks and Terminals,

Sempra LNG & Midstream, a unit of Sempra Energy, has announced that its wholly owned affiliate, Port Arthur LNG, LLC, has selected Bechtel as the engineering, procurement, construction and commissioning (EPC) contractor for the Port Arthur liquefaction project under development in Jefferson County, Texas, US.

Bechtel will perform the engineering, execution planning and related activities necessary to prepare, negotiate and finalise a lump-sum EPC contract for the project in accordance with the planned development schedule.

"Port Arthur LNG is one of three major LNG export projects that are an important part of our growth platform," said Joseph A. Householder, President and Chief Operating Officer of Sempra Energy. "Bechtel brings to our project outstanding management experience and commitment to safety we expect on all of our projects."

"We are confident Bechtel's construction and management team will help us achieve a world-class LNG export project at Port Arthur and meet the global demand for LNG," said Octavio M. Simoes, President of Sempra LNG & Midstream.

"We look forward to partnering with Sempra LNG & Midstream to successfully develop the Port Arthur LNG facility, from planning through project startup," said Darren Mort, General Manager of Bechtel LNG. "We are honoured that Sempra LNG & Midstream has entrusted us with the opportunity to play a key role in helping them deliver energy to customers across the globe."

The proposed Port Arthur liquefaction project is expected to include two natural gas liquefaction trains to enable the long-term sale of approximately 11 million tpy of LNG; feed gas pre-treatment facilities; natural gas liquids and refrigerant storage; up to three LNG storage tanks; two marine berths and associated facilities.

Development of the Port Arthur liquefaction project is contingent upon obtaining customer commitments, completing the required commercial agreements (including a definitive EPC contract), securing all necessary permits and approvals, obtaining financing and incentives, reaching a final investment decision and other factors associated with the investment.

In addition to Port Arthur, Sempra LNG & Midstream developed a three-train, 14 million tpy liquefaction facility at Cameron LNG in Hackberry, La., currently in construction, and has permitted a liquefaction facility at Energía Costa Azul in Baja California, Mexico. Completion of these projects is subject to a number of risks and uncertainties.

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