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Sat September 19 2020

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Bechtel signs deal for Texas LNG project

4 Mar Bechtel has signed an engineering, procurement and construction (EPC) contract for a major LNG project being developed in Texas, USA.

Its subsidiary Bechtel Oil, Gas, & Chemicals signed the contract for the Port Arthur LNG liquefaction project with a subsidary of Sempra.

It is estimated that the proposed project will create a craft workforce on site that peaks at about 5,000 construction jobs, as well as several hundred additional Texas jobs in support of the project, including material fabrication. Nearly 200 long-term jobs will be created to operate and maintain the Port Arthur LNG facility.

As part of the EPC for the Port Arthur LNG liquefaction project, Bechtel Oil, Gas, & Chemicals will perform the detailed engineering, procurement, construction, commissioning, start-up, performance testing and operator training activities for the project. The scope of the agreement also includes continuing engineering ahead of the final investment decision to better assure project cost and schedule certainty.

Development of the Port Arthur LNG project is contingent upon obtaining additional customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, incentives and other factors, and reaching a final investment decision.

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"Building new export infrastructure in the U.S. is critical to providing overseas markets with cleaner fuel alternatives," said Jeffrey Martin, chairman and CEO of Sempra Energy. "Partnering with a world-class construction firm like Bechtel bolsters our execution plan for one of the world's largest LNG development projects."

Bechtel chairman and CEO Brendan Bechtel said: “We are honoured and grateful that Sempra has chosen Bechtel as their trusted partner to help grow Sempra's LNG business on the Gulf Coast. Together, we will deliver an important, clean and sustainable energy source to the world while creating jobs and building economic opportunities for the Gulf Coast community."

The Port Arthur LNG development project is expected to initially include two liquefaction trains, two liquefied natural gas (LNG) storage tanks, a marine berth and associated loading facilities and related infrastructure necessary to provide liquefaction services. The project site sits on nearly 3,000 acres of land along three miles of the Sabine-Neches waterway and has the potential to become one of the largest LNG export projects in North America.

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