Cheniere Energy Partners LP unit Sabine Pass Liquefaction LLC and Bechtel Oil, Gas and Chemicals Inc. have entered into a lump sum turnkey contract for the engineering, procurement and construction of the third and fourth liquefaction trains to be constructed adjacent to the Sabine Pass LNG terminal in Cameron Parish, LA. The contract price is about $3.8 billion. Total expected costs for the third and fourth trains before financing are estimated to be between $4.5 billion and $5 billion.Sabine Liquefaction intends to give Bechtel a notice to proceed upon achieving financing and a final investment decision. Construction for the third and fourth trains is expected to begin in the first half of 2013. Sabine Liquefaction commenced full construction for the first two liquefaction trains in August. Sabine Liquefaction recently announced that it is developing a fifth and sixth liquefaction train at the project and has entered into a sale and purchase agreement with Total Gas & Power North America Inc. (see Daily GPI, Dec. 18).
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Golden Pass LNG Awards $1B Engineering, Construction Contract
Golden Pass LNG LLC awarded a $1 billion lump-sum turnkey contract to Chicago Bridge & Iron Co. (CB&I) for construction of the 2 Bcf/d Golden Pass liquefied natural gas (LNG) import facility near Sabine Pass, TX. The terminal, which will deliver regasified LNG to an ExxonMobil refinery and to the U.S. gas pipeline grid, is expected to be completed in 2009 when it will begin receiving LNG from Qatar.
Industry Briefs
Washington Group International has been awarded a turnkeyproject valued at more than $200 million to expand Louisiana Land& Exploration’s Lost Cabin Gas Plant facility in centralWyoming. The project will more than double the existing capacity ofthe plant. The new plant will be capable of processing 180 MMcf/dof gas, removing hydrogen sulfide, carbon dioxide, elementalsulfur, and other impurities. LL&E is a wholly owned subsidiaryof Burlington Resources. “LL&E has had great success over thepast several years with this plant and the associated well drillingprogram,” said Washington Petroleum & Chemicals President BobWiesel. “The combination of growing demand, efficient operation,and reservoir volumes is creating the need for the plant to beexpanded again. We designed and built the original Train 1 and theTrain 2 expansion. We take it as a great sign of confidence thatLL&E has chosen us again for the larger Train 3 expansion.” Theraw gas to be processed in the plant comes from wells in the deepMadison Formation in the Madden field in central Wyoming.
Industry Briefs
Duke/Fluor Daniel of Charlotte, NC, was selected by TexasIndependent Energy to provide turnkey engineering, procurement,construction and start-up services for a 1,000 MW, greenfield powerplant in Santa Clara, TX. The project is Texas Independent Energy’s(TIE) first power plant to receive financing. TIE is a jointventure of Panda Energy International Inc. and PSEG Global. “Basedon our reference power plant design, the Guadalupe Power Project isour fifth merchant power plant we are building in Texas,” saidClarence Ray, CEO of Duke/Fluor Daniel. Commercial operation ofPhase I scheduled for December 2000. Construction began thissummer.
Duke/Fluor Daniel to Build Mich. Cogen
Duke/Fluor Daniel was awarded a turnkey contract Wednesday tobuild a 550 MW, $240 million cogeneration plant in Dearborn MI.Details of the contract were not disclosed.
In Brief
Duke/Fluor Daniel said it has been awarded a turnkey contract byPanda Paris Power LP, to provide engineering, procurement,construction and start-up services for a proposed 1,000 MWgas-fired power plant in Paris, TX. “Power from the plant will bedistributed through TU Electric and will be sold to members of theElectric Reliability Council of Texas (ERCOT), the Southwest PowerPool (SPP) and other users,” said a spokesman for Dallas-basedPanda Energy, parent company of Panda Paris Power. Commercialoperation of the combined cycle power plant is scheduled for summer2000. Construction will begin next March.
