Stock Markets May 28, 2026 09:27 AM

Cheniere Engages Bechtel for Sabine Pass Phase 1 Expansion in Louisiana

EPC contract signed and limited notice to proceed issued as company targets an initial 6+ mtpa boost and aims for an early-2027 final investment decision

By Ajmal Hussain CQP

Cheniere Energy Partners has contracted Bechtel Energy to provide engineering, procurement and construction services for the first phase of an expansion at its Sabine Pass LNG terminal in Cameron Parish, Louisiana. The phase centers on Train 7, a boil-off gas re-liquefaction unit and associated infrastructure, and is expected to add more than 6 million tonnes per annum of liquefaction capacity. Cheniere has issued Bechtel a limited notice to proceed to begin early engineering and procurement work and anticipates a final investment decision on the phase by early 2027.

Cheniere Engages Bechtel for Sabine Pass Phase 1 Expansion in Louisiana
CQP

Key Points

  • Cheniere signed an engineering, procurement and construction contract with Bechtel Energy for Phase 1 of the Sabine Pass LNG expansion in Cameron Parish, Louisiana - impacts the energy and construction sectors.
  • Phase 1 will include Train 7, a boil-off gas re-liquefaction unit and related infrastructure tied to the existing terminal, with an expected capacity addition of over 6 mtpa - relevant for LNG supply and export volumes.
  • Sabine Pass already operates liquefaction facilities with total production capacity of over 30 mtpa; the terminal supports U.S. shale gas exports sourced from the Permian and Haynesville basins and contributes to the U.S. trade balance and allied gas supply options - relevant for trade and geopolitics.

Cheniere Energy Partners said on Thursday it has signed a contract with Bechtel Energy to carry out engineering, procurement and construction work for the first phase of the Sabine Pass liquefied natural gas expansion in Cameron Parish, Louisiana.

The initial phase will feature the addition of Train 7 and a boil-off gas re-liquefaction unit alongside related infrastructure integrated with the existing Sabine Pass LNG terminal. Cheniere described the phase as having an expected total production capacity of over 6 million tonnes per annum of LNG.

Sabine Pass already operates natural gas liquefaction facilities with combined production capacity of over 30 million tonnes per annum. The terminal enables the United States to export shale gas, with feedstock sourced from the Permian and Haynesville basins, and the company said those exports bolster the U.S. trade balance while offering geopolitical allies an alternative to Russian or Middle Eastern gas.

Cheniere indicated it expects to reach a final investment decision for the first phase by early 2027. To support preparatory work, the company issued Bechtel a limited notice to proceed, authorizing early-stage engineering and procurement activity ahead of any final investment commitment.

The contract with Bechtel covers the engineering, procurement and construction scope for the phase described. The expansion phase is tied to the existing Sabine Pass terminal infrastructure and is positioned as the first step in increasing the terminal's overall liquefaction throughput.


Contextual notes

  • The Sabine Pass terminal's current operational capacity exceeds 30 mtpa of LNG.
  • The initial expansion phase is expected to add over 6 mtpa through Train 7 and associated systems.
  • Cheniere has provided Bechtel with a limited notice to proceed, enabling early engineering and procurement work.
  • Cheniere expects a final investment decision on Phase 1 by early 2027.

Risks

  • Cheniere expects to reach a final investment decision on Phase 1 by early 2027, indicating timing for project commitment remains an expectation rather than a completed decision - this is a timing uncertainty for project execution and market impact.
  • The limited notice to proceed issued to Bechtel permits early engineering and procurement only, not full-scale construction approval, so early work has begun without a final investment decision.
  • The Phase 1 capacity figure is stated as an expectation (over 6 mtpa), which signals that the final installed capacity could differ from current projections.

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