Houston-based energy company Cheniere Energy, Inc. (NYSE: LNG), subsidiary, Corpus Christi Liquefaction LLC and Bechtel Oil, Gas and Chemicals Inc. have entered into two contracts for the engineering, procurement and construction (EPC) of LNG trains and related facilities being developed near Corpus Christi, Texas.
Charif Souki, Chairman and CEO noted that this project is fourth on the Department of Energy's order of precedence for non-FTA LNG export approvals. The company is currently waiting to receive a FERC scheduling notice.
Work under the lump sum turnkey contract is expected to commence in 2014, subject to Corpus Christi Liquefaction reaching an investment decision. Operation of the first LNG train is expected to commence 2018.
Phase one of the contract includes two LNG trains, two tanks, one berth and a second partial berth.
The second phase includes one LNG train, one additional tank and completion of the second berth.
Total expected costs for the LNG trains, facilities and the owner's cost and contingencies before financing costs are estimated at $10.5 billion to $11.0 billion.
The contract price for the first phase contract is approximately $7.1 billion and about $2.4 billion for the second phase.
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