Cheniere Energy Partners has taken a major step toward expanding its Sabine Pass LNG export terminal in Cameron Parish, Louisiana, signing a lump sum, turnkey engineering, procurement and construction contract with Bechtel for the first phase of the project. The deal covers Train 7, a boil off gas re liquefaction unit, supporting infrastructure and tie ins to the existing terminal.
Cheniere also issued Bechtel a limited notice to proceed, allowing early engineering and procurement work to begin ahead of a final investment decision. The first phase is expected to add more than 6 million tonnes per annum of LNG production capacity, including estimated debottlenecking gains across the existing facility.
The broader Sabine Pass Expansion Project is being developed for up to three large scale liquefaction trains with total peak production capacity of up to roughly 20 mtpa. Phase 1 is backed by long term agreements with customers, though FID remains subject to regulatory approvals and financing. The company expects to reach that decision by early 2027.
Applications are still pending before the Federal Energy Regulatory Commission to site, construct and operate the expansion, and before the Department of Energy for authorization to export LNG to non free trade agreement countries. Sabine Pass already runs more than 30 mtpa of liquefaction capacity, with five storage tanks, regasification facilities and three marine berths.
Chairman, President and CEO Jack Fusco framed the move against tightening global LNG market dynamics, saying secure supply has become critical as Europe and Asia compete for long term volumes. If sanctioned, the Sabine Pass expansion would reinforce the United States position as the world largest LNG exporter and lock in another decade of cargoes for utility and trading house buyers.