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Sempra Energy Subsidiary Port Arthur LNG Signs EPC Contract With Bechtel

Energy infrastructure company Sempra Energy (SE) and Bechtel said Tuesday that their respective subsidiaries, Port Arthur LNG, LLC as well as Bechtel Oil, Gas, and Chemicals, Inc., have signed a fixed-price engineering, procurement and construction or EPC contract for the Port Arthur LNG liquefaction project under development in Port Arthur, Texas.

As part of the EPC contract, Bechtel Oil, Gas, and Chemicals will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities for the project, the companies said.

In addition, the scope of the agreement includes continuing pre-final investment decision engineering to better assure project cost and schedule certainty. Sempra Energy said that a final investment decision is expected in the third quarter of 2020.

The Port Arthur LNG development project is expected to initially include two liquefaction trains, two liquefied natural gas or LNG storage tanks, a marine berth and associated loading facilities as well as related infrastructure necessary to provide liquefaction services, with a nameplate capacity of about 13.5 million tonnes per annum (Mtpa) of LNG.

Sempra Energy noted that 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, with expansion capabilities of up to eight liquefaction trains and approximately 45 Mtpa of capacity.

The U.S. Department of Energy has authorized the Port Arthur LNG development project to export domestically produced LNG to countries that do not have a free trade agreement with the U.S. in May 2019. Additionally, the Federal Energy Regulatory Commission issued the approval to site, construct and operate the liquefaction-export facility in April 2019.

Sempra Energy said that the proposed project is expected to create a craft workforce on site that peaks at about 5,000 construction jobs, in addition to 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, the company added.

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