Prep work for sixth LNG train at Sabine Pass begins soon

(Courtesy Cheniere Energy) Sabine Pass in Louisiana

Work is about to begin on a sixth liquefied natural gas train at Sabine Pass in Louisiana.

Cheniere Energy Inc. of Houston will pay Bechtel Corp. $2.02 billion for the engineering, procurement and construction work, the Houston Business Journal reports.

On the company’s third-quarter earnings conference call this month, Cheniere CFO Michael Wortley said Cheniere has given Bechtel a limited notice to proceed with some engineering and prep work at the site. Cheniere is paying Bechtel $20 million a month in November, December and January, according to the contract, which was filed with the U.S. Securities and Exchange Commission Nov. 9.

Cheniere also has the option to add on engineering, procurement and construction work for a new berth at the site, which would cost an estimated $490 million, according to the contract.

Bechtel has built all the LNG trains for Cheniere at Sabine Pass, located on more than 1,000 acres of land along the Sabine Pass River on the border between Texas and Louisiana, in Cameron Parish.

Read the Houston Business Journal story.