Bechtel Enters into Contract with Cheniere for Corpus Christi Liquefaction Project

13 December 2013 HOUSTON

Company to Design and Build Additional US Export LNG Facility

Bechtel has entered into two lump-sum turnkey contracts with Cheniere Energy, Inc. subsidiary Corpus Christi Liquefaction, LLC for the engineering, procurement, and construction of liquefied natural gas (LNG) trains and related facilities being developed near Corpus Christi, Texas. The Corpus Christi Liquefaction Project is expected to be constructed in stages, with each train commencing operations on a staggered basis. Work under the contract is expected to begin in 2014, subject to Corpus Christi Liquefaction’s reaching a positive final investment decision. Operation of the first LNG train is expected to commence in 2018.

"We have selected Bechtel as our EPC contractor for our next LNG export project being developed near Corpus Christi, Texas. Bechtel has an extensive track record in building some of the largest LNG export production facilities in the world and is the EPC contractor on our LNG export project at the Sabine Pass LNG terminal. Bechtel built our existing regasification facilities at the Sabine Pass LNG terminal on time and on budget, and is ahead of schedule on the four LNG trains currently under construction," said Charif Souki, Cheniere’s chairman and CEO.

"Our Corpus Christi Liquefaction Project is now fourth on the U.S. Department of Energy’s order of precedence for non-FTA LNG export approvals, and is waiting to receive a Federal Energy Regulatory Commission scheduling notice,” said Souki. “We recently announced the first LNG sale and purchase agreement (SPA) for the Corpus Christi Liquefaction Project with Pertamina for approximately 0.8 million tonnes per annum and expect to enter into additional SPAs in due course. We expect to reach FID for the Corpus Christi Liquefaction Project in 2014."

“Cheniere is at the forefront of North America’s LNG industry, and we appreciate the opportunity to continue our collaboration in delivering energy to global markets,” said Jack Futcher, president of Bechtel’s oil, gas, and chemicals business unit. “We look forward to working with Cheniere to expand their portfolio of world-class LNG facilities.”

The Corpus Christi Liquefaction Project includes up to three LNG trains, each with a design production capacity of approximately 4.5 million tonnes per annum of LNG, three LNG storage tanks with capacity of approximately 10.1 billion cubic feet equivalent, and two berths that can accommodate vessels with capacity of up to 267,000 cubic meters.

The Stage 1 EPC contract includes two LNG trains, two tanks, one complete berth, and a second partial berth. The Stage 2 EPC contract includes one LNG train, one additional tank, and completion of the second berth. The LNG trains are being designed, constructed, and commissioned by Bechtel using the ConocoPhillips Optimized Cascade® technology, a proven technology deployed in numerous LNG projects around the world.

The contract price of the Stage 1 EPC contract is approximately $7.1 billion, and the contract price for the Stage 2 EPC contract is approximately $2.4 billion. Total expected costs for the three LNG trains and the related facilities before financing costs are estimated to be between $10.5 billion and $11.0 billion, including an estimate for owner's costs and contingencies.

Bechtel is the global leader in the LNG industry. The company is responsible for about half of LNG liquefaction capacity under construction today, including four projects in Australia and the first LNG export facility in the United States, Cheniere’s Sabine Pass Liquefaction project.