Bechtel Oil, Gas and Chemicals Inc. will design and build the first of two liquefaction trains at the Sabine Pass LNG terminal in Cameron Parish under a $3.9 billion contract with Sabine Pass Liquefaction LLC, a subsidiary of Cheniere Energy Partners LP.
Sabine Liquefaction is planning liquefaction facilities with an annual production capacity of 9 million metric tons or roughly 438.3 billion cubic of feet. Sabine plans to sell 340.9 billion cubic feet of that production under long-term sales agreements and has already signed a contract for half of that amount with BG Gulf Coast LNG LLC.
Sabine will make a final decision on the facility as soon as it signs a contract for the other half of the long-term sales production. The company expects to begin construction in 2012.
The total costs for the project before financing costs are estimated to be between $4.5 billion and $5 billion, including an estimated $600 million to $1 billion for owner’s costs and contingencies.