Cheniere and Bechtel Announce Substantial Completion of Train 1 at Sabine Pass
31 May 2016
"Today, together with our EPC contractor Bechtel, we announce that Train 1 of the SPL Project has achieved Substantial Completion, and we are taking care, custody, and control of Train 1 months ahead of the guaranteed completion date and on budget," said Jack Fusco, CEO of Cheniere Partners. "I would like to thank Cheniere's professionals who have worked tirelessly since 2012 to complete this significant milestone. I would also like to congratulate our EPC partner Bechtel for this achievement and look to achieve many more."
"I congratulate the entire team – our customer Cheniere Partners, our global suppliers, and the Bechtel team – on the extraordinary achievement of bringing Train 1 of the SPL Project to life by putting their expertise and experience into finding innovative solutions to the challenges of megaproject engineering and construction," said Jack Futcher, president of Bechtel's Oil, Gas and Chemicals business unit. "Cheniere Partners is at the forefront of North America's LNG industry, and we are looking forward to our continued collaboration in delivering energy to global markets."
Under a sale and purchase agreement ("SPA") with BG Gulf Coast LNG, LLC ("BG"), the date of first commercial delivery ("DFCD") for Train 1 is expected to occur in November 2016, upon which the SPA's 20-year term commences. Prior to DFCD, BG has certain rights to early cargoes produced from Train 1 as described in the SPA.
Now that Train 1 has achieved substantial completion, financial results from its LNG sales going forward will be reflected in the statement of operations.
Cheniere Partners, through its subsidiary, Sabine Pass Liquefaction, LLC ("SPL"), is developing and constructing natural gas liquefaction facilities at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Cheniere Partners, through SPL, plans to construct over time up to six liquefaction trains, which are in various stages of development and construction. Train 1 is complete and has achieved substantial completion, Train 2 is undergoing commissioning and is expected to begin producing LNG in due course, Trains 3 through 5 are under construction and Train 6 is fully permitted. Each liquefaction train is expected to have a nominal production capacity of approximately 4.5 million tonnes per annum ("mtpa") of LNG. SPL has entered into six third-party LNG sale and purchase agreements ("SPAs") that in the aggregate equate to approximately 19.75 mtpa of LNG and commence with the date of first commercial delivery of Trains 1 through 5 as specified in the respective SPAs. For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Form 10-Q for the period ending March 31, 2016, filed with the Securities and Exchange Commission.
This press release contains certain statements that may include "forward-looking statements." All statements, other than statements of historical facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere Partners' business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere Partners' LNG terminal and liquefaction business, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, and (vi) statements regarding future discussions and entry into contracts. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners' actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners' periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.