Sempra, Bechtel finalize Port Arthur LNG EPC contract

Oct. 20, 2022
Sempra Infrastructure has amended and restated its fixed-price EPC contract with Bechtel Energy for development of the Port Arthur LNG plant’s 13.5-million tpy Phase 1.

Sempra Infrastructure, a subsidiary of Sempra, has amended and restated its fixed-price engineering, procurement, and construction (EPC) contract with Bechtel Energy for development of the Port Arthur LNG plant’s 13.5-million tonne/year (tpy) Phase 1 project under development in Jefferson County, Tex. Sempra described execution of the final contract as a “critical step” in advancing the project to final investment decision.

Under the EPC contract, Bechtel will also perform Phase 1 commissioning, startup, performance testing, and operator training. The amended contract includes a price of $10.5 billion. Sempra initially awarded the EPC work to Bechtel in 2020 (OGJ Online, Mar. 3, 2020).

Port Arthur LNG Phase 1 is permitted and expected to include two 6.75-million tpy liquefaction trains and as many as three 160,000-cu m LNG storage tanks. A similarly sized Port Arthur LNG Phase 2 project is also under development.

Earlier this year, Sempra Infrastructure substantially completed marketing of Phase 1 production, signing of a series of non-binding agreements with Polish Oil & Gas Co. (PGNiG), RWE Supply & Trading GMBH, INEOS Energy Trading Ltd., and ConocoPhillips Co. (OGJ Online, May 25, 2022; July 14, 2022).

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Christopher E. Smith | Editor in Chief

Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.