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Cheniere Partners Enters into Lump Sum Turnkey Contract with Bechtel for Trains 3 and 4 at Sabine Pass Liquefaction



   Cheniere Partners Enters into Lump Sum Turnkey Contract with Bechtel for
                  Trains 3 and 4 at Sabine Pass Liquefaction

PR Newswire

HOUSTON, Dec. 21, 2012

HOUSTON, Dec. 21, 2012 /PRNewswire/ -- Cheniere Energy Partners, L.P.
("Cheniere Partners") (NYSE MKT: CQP) announced today that its subsidiary,
Sabine Pass Liquefaction, LLC ("Sabine Liquefaction"), and Bechtel Oil, Gas
and Chemicals, Inc. ("Bechtel") have entered into a lump sum turnkey contract
for the engineering, procurement and construction of the third and fourth
liquefaction trains to be constructed adjacent to the Sabine Pass LNG terminal
located in Cameron Parish, Louisiana (the "Trains 3&4 EPC Contract").  Sabine
Liquefaction intends to give Bechtel a notice to proceed ("NTP") with
construction for the third and fourth liquefaction trains upon achieving
acceptable financing arrangements and making a final investment decision.
 Construction for the third and fourth trains is expected to begin in the
first half of 2013.  Sabine Liquefaction issued NTP to Bechtel and commenced
full construction for the first two liquefaction trains in August 2012. 

The liquefaction trains are being designed, constructed and commissioned by
Bechtel using the ConocoPhillips Optimized Cascade® technology, a proven
technology deployed in numerous LNG projects around the world.  Nominal
capacity for each train will be approximately 4.5 million tonnes per annum. 
 The liquefaction trains will be built next to the existing facilities at the
Sabine Pass LNG terminal, which include five tanks with storage capacity of
16.9 billion cubic feet equivalent ("Bcfe"), two docks that can handle vessels
up to 265,000 cubic meters and vaporizers with regasification capacity of 4.0
billion cubic feet per day ("Bcf/d").  Sabine Liquefaction has entered into
four long-term, 20-year sale and purchase agreements that in aggregate
represent approximately 90 percent of the nominal capacity of the four
liquefaction trains.  Operations for the first liquefaction train are expected
to commence as early as 2015, with each liquefaction train thereafter coming
on line on a staggered basis. 

The total contract price of the Trains 3&4 EPC Contract is approximately $3.8
billion.  Total expected costs for the third and fourth liquefaction trains
before financing costs are estimated to be between $4.5 billion and $5.0
billion, including an estimate for owner's costs and contingencies. 

"We look forward to our continued collaboration with Bechtel on the
development and construction of our liquefaction trains at Sabine Pass. 
Bechtel built our existing LNG terminal on time and on budget and has an
extensive track record in building some of the largest LNG export production
facilities in the world," said Charif Souki, Chairman and CEO.  "Bechtel has
started construction on our first two liquefaction trains, which are expected
to be completed ahead of the EPC schedule, and we expect to commence
construction on the third and fourth liquefaction trains in the first half of
2013."  

In addition, Sabine Liquefaction recently announced that it is developing a
fifth and sixth liquefaction train.  Sabine Liquefaction has entered into a
sale and purchase agreement with Total Gas & Power North America, Inc.
("Total") under which Total has contracted for approximately half of the
expected LNG production capacity of the fifth liquefaction train and based on
indications of interest expects to contract the remaining capacity in due
course.  Sabine Liquefaction has begun working with Bechtel on the preliminary
engineering for a fifth and sixth train and expects to commence the regulatory
process in the first half of 2013.

Additional Information

Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located on
the Sabine Pass Channel in western Cameron Parish, Louisiana.  The Sabine Pass
LNG terminal has regasification and send-out capacity of 4.0 billion cubic
feet per day (Bcf/d) and storage capacity of 16.9 billion cubic feet
equivalent (Bcfe).  Cheniere Partners is developing a project to add
liquefaction and export capabilities adjacent to the existing infrastructure
at the Sabine Pass LNG terminal (the "Liquefaction Project").  The
Liquefaction Project was initially designed and permitted for up to four
modular LNG trains, each with a nominal capacity of approximately 4.5 mtpa. 
Sabine Liquefaction has begun developing a fifth and sixth train.  The initial
Liquefaction Project is expected to be constructed with each LNG train
commencing operations approximately six to nine months after the previous
train.  In November 2011, Sabine Pass Liquefaction, LLC ("Sabine
Liquefaction") entered into a lump sum turnkey contract for the engineering,
procurement and construction of the first two trains of the project with
Bechtel Oil, Gas and Chemicals, Inc. ("Bechtel").  Sabine Liquefaction has
also entered into four long-term customer sale and purchase agreements
("SPAs") for a total of approximately 16.0 mtpa of LNG volumes, which
represents approximately 89 percent of the nominal LNG volumes.  The customers
include BG Gulf Coast LNG, LLC ("BG") for 5.5 mtpa, Gas Natural Fenosa for 3.5
mtpa, KOGAS for 3.5 mtpa and GAIL (India) Ltd. for 3.5 mtpa. In addition,
Sabine Liquefaction has entered into a SPA with Cheniere Marketing, LLC for up
to approximately 2.0 mtpa of LNG that is produced but not already committed to
third parties.  The BG and Cheniere Marketing SPAs commence with the start of
LNG train one operations and the Gas Natural Fenosa SPA commences with the
start of train two operations.  The KOGAS SPA commences with the start of
train three operations and the GAIL (India) Ltd. SPA commences with the start
of train four operations.  Total Gas & Power North America, Inc. ("Total") has
entered into an SPA for 2.0 mtpa that commences with the start of train five
operations.  Cheniere Partners issued a notice to proceed to Bechtel to
commence construction for the first two trains in August 2012.  Commencement
of construction for the third and fourth trains is subject, but not limited
to, obtaining financing and Cheniere Partners making a final investment
decision.  Commencement of construction for the fifth and sixth trains is
subject, but not limited to, obtaining regulatory approvals, completing
contracting for the remaining LNG production volumes, entering into an EPC
contract, obtaining financing and Cheniere Partners making a final investment
decision.   Cheniere Partners has placed documentation pertaining to the
Liquefaction Project, including the applications and supporting studies, on
its website located at http://www.cheniereenergypartners.com.

Milestone                            Trains 1&2          Trains 3&4
• DOE export authorization           Complete            Complete
• Definitive commercial agreements   Completed 7.7 mtpa  Completed 8.3 mtpa
- BG Gulf Coast LNG, LLC             4.2 mtpa            1.3 mtpa
- Gas Natural Fenosa                 3.5 mtpa
- KOGAS                                                  3.5 mtpa
- GAIL (India) Ltd.                                      3.5 mtpa
• EPC contract                       Complete            Complete
• Financing commitments                                  1Q13
- Equity                             Complete
- Debt                               Complete
• FERC authorization                 Complete            Complete
- Commence construction              Complete            2013
• Issue NTP to Bechtel               Complete            2013
• Commence operations                2015/2016           2016/2017

 

Forward-Looking Statements

This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical fact, included herein are
"forward-looking statements." Included among "forward-looking statements" are,
among other things, (i) statements regarding Cheniere Partners' business
strategy, plans and objectives, including the construction and operation of
liquefaction facilities, (ii) statements regarding our expectations regarding
regulatory authorizations and approvals, (iii) statements expressing beliefs
and expectations regarding the development of Cheniere Partners' LNG terminal
and liquefaction business, (iv) statements regarding the business operations
and prospects of third parties, and (v) statements regarding future
discussions and entry into contracts.  Although Cheniere Partners believes
that the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. Cheniere Partners' actual results
could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those discussed in
Cheniere Partners' periodic reports that are filed with and available from the
Securities and Exchange Commission. You should not place undue reliance on
these forward-looking statements, which speak only as of the date of this
press release. Other than as required under the securities laws, Cheniere
Partners does not assume a duty to update these forward-looking statements.

SOURCE Cheniere Energy Partners

Website: http://www.cheniereenergypartners.com
Contact: Investors: Christina Burke: +1-713-375-5104, Nancy Bui:
+1-713-375-5280; Media: Diane Haggard: +1-713-375-5259
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